Media: Alameda allocates $400m to hedge fund from SBF’s former colleagues
One of Alameda Research’s largest recipients of funding was the hedge fund Modulo Capital. The entity was registered in the same condominium where former FTX chief Sam Bankman-Fried (SBF) resided, CoinDesk reports.
On December 6, the Financial Times распространила a table of investments in which Modulo Capital featured.
Two weeks later, journalists learned that the hedge fund was founded by traders from Jane Street, where Sam Bankman-Fried and Alameda Research CEO Caroline Ellison had previously worked.
According to the publication’s sources, the firm sought funding from various institutional investors before receiving backing from the trading arm of SBF. The firm trades in cryptocurrency and traditional financial assets.
“It didn’t strike me as all that crazy. Sam liked throwing money at things expected to deliver returns. Former Jane Street colleagues seem to fit this description. It was better than some junk Alameda threw money at,” — said by a source.
In November, New York Times sources reported that Bankman-Fried and his inner circle, consisting of former Jane Street colleagues and MIT classmates, ten of them, lived in a luxurious penthouse in the Bahamas. One insider described the FTX and Alameda teams as “a gang of kids in the Bahamas”. The company itself—a place rife with conflicts of interest, cronyism and lack of oversight.
In November, the new FTX CEO John Ray stated that the company absolutely lacked control over the movement of funds and reliable financial information.
During congressional hearings, the executive accused SBF and his team of storing private keys without encryption. In his view, their actions represented “old-fashioned wastefulness”, rather than sophisticated, meticulously planned crimes.
The U.S. Department of Justice charged former FTX chief Sam Bankman-Fried in eight criminal counts, including conspiracy and fraud involving electronic means.
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