<a href="https://www.cryptoknowmics.com/news/sam-bankman-fried-accused-by-us-sec-of-scamming-ftx-investors">Sam Bankman- Fried's</a> investment company, <a href="https://www.cryptoknowmics.com/news/alameda-research-to-repay-two-large-loans-denominated-in-bitcoin-and-ether">Alameda Research</a>, <a href="https://www.ft.com/content/aaa4a42c-efcc-4c60-9dc6-ba6cccb599e6" target="_blank" rel="nofollow noopener">loaned</a> $400 million to Modulo Capital. Modulo Capital is formed by some former Jane Street traders for having a lot of similarities to Caroline Ellison and Bankman-Fried. Ellison served as Alameda's CEO.
<h2>Ex Jane Street Traders Form Modulo Capital</h2>
Bankman-Fried, Ellison, and three other former traders from Jane Street, a New York-based corporation, created Modulo Capital before they entered the <a href="https://www.cryptoknowmics.com/news/australia-prepares-to-regulate-cryptocurrency-service-providers-in-2023">cryptocurrency</a> market. The same Bahamian luxury condominium neighborhood where the two people lived also houses Modulo Capital.

Alameda Research invested $400 million in Modulo Capital, one of its biggest investments. According to people with knowledge of the situation, the company formed by Jane Street contacted other corporate finance investors before choosing Alameda.
<h2>Alameda Investments Under Scrutiny</h2>
Bankman-Fried was taken into custody on December 12 in the Bahamas on suspicion of conspiring to commit wire fraud, securities fraud, and money laundering. According to the reports,  he has subsequently consented to be deported to the United States to face fraud accusations.

Alameda's investments are under intense scrutiny as creditors wait to be paid following a taxing bankruptcy procedure involving the firm and <a href="https://www.cryptoknowmics.com/news/cryptoquant-data-indicates-binance-isnt-displaying-ftx-like-behavior">FTX</a>. John J. Ray III, the new CEO of FTX, testified last week before the U.S. House Financial Services Committee and stated that the shortfall was believed to be $8 billion and that it was difficult to track the money due to a complete absence of documentation.

FTX's Bankman-Fried Provides $400M to Former Jane Street Traders

Bankman-Fried, Ellison, and 3 other former traders from Jane Street, a New York-based company, created Modulo Capital before they entered the crypto market.

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FTX's Bankman-Fried Provides $400M to Former Jane Street Traders

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