The New York TimesThe New York Times

The unknown hedge fund that got $400 million from Sam Bankman-Fried

By David Yaffe-Bellany, Matthew Goldstein and Royston Jones Jr.

24 Jan 2023 · 6 min read

Editor's Note

The New York Times delves into the obscure cryptocurrency trading firm, Modulo Capital, which received a huge investment from FTX's discredited founder—and whose assets could help make restitution.

Not long before FTX collapsed in November, its founder, Sam Bankman-Fried, sent $400 million to an obscure cryptocurrency trading firm called Modulo Capital.

The fledgling firm, which was founded in March and operated out of the same Bahamian compound where Bankman-Fried lived, had no track record or public profile. One of the founders, Duncan Rheingans-Yoo, was only two years out of college. His business partner, Xiaoyun Zhang, known as Lily, was a former Wall Street trader who had previously been romantically involved with Bankman-Fried, according to four people with knowledge of their relationship.

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