SBF Invested $400M in Firm Tied to Ex-Lover, $500M Seized

• Sam Bankman-Fried (SBF) invested $400 million in Modulo Capital in 2022.
• SBF had a relationship with one of the founders of the company, Xiaoyun Lily Zhang.
• SBF is currently being investigated for recklessly handling funds, with $500 million already seized from him.

Sam Bankman-Fried (SBF), the ex-CEO of FTX, is being investigated for recklessly handling funds after it was revealed that he had invested $400 million in Modulo Capital in the third and fourth quarters of 2022. Modulo Capital is a trading firm that was launched in March 2022 and had received two large sums of money from Alameda Research, totaling $400 million.

The Financial Times uncovered this information after finding a spreadsheet that showed how the funds were sent in two separate payments, $250 million in the third quarter, and another $150 million in the fourth quarter. It is believed that the $400 million was transferred from SBF’s FTX funds.

The relationship between SBF and Modulo Capital’s founder, Xiaoyun „Lily“ Zhang, is what makes this transaction even more dubious. Zhang had worked at Jane Street Capital for a decade, coinciding with the period when SBF worked there too. Reports have suggested that the two had a romantic relationship. The other co-founder of the company, Duncan Rheingans-Yoo, had only graduated from Havard two years prior to the transaction.

The new handlers of FTX are now searching for assets that can be used to reimburse customers, and in the process, they have found out about SBF’s involvement with Modulo Capital. As a result, more than $500 million has already been seized from SBF. The investigation is ongoing, and it remains to be seen how much more money will be taken from him.

Crypto Companies: Navigating Legal and Market Challenges for Success

• Lisa Rubin, a blockchain attorney with Paul Hastings, sat down with Decrypt’s Jason Nelson at 0xpo Crossroads in San Francisco on November 3 to discuss legal misconceptions the industry still holds.
• In December 2022 at Art Basel in Miami, Decrypt Studios held the inaugural Crypties awards gala. With emcee Josh Ostrovsky („The Fat Jewish“) and presenters from a range of crypto projects, statuettes were awarded in nine categories.
• Tezos co-founder Kathleen Breitman talked about how the Tezos blockchain has used a proof-of-stake mechanism since its inception, her admiration for Tendermint, Ethereum and sharding, progressive decentralization, and NFT gaming with Decrypt’s Stephen Graves onstage at Web Summit in Lisbon.

At 0xpo Crossroads in San Francisco on November 3, blockchain attorney Lisa Rubin sat down with Decrypt’s Jason Nelson to discuss legal misconceptions the industry still holds. Lisa expressed that crypto companies need to seek legal advice before launching their projects, as the legal landscape of the industry is constantly shifting and evolving. She highlighted the importance of due diligence, and the need to understand the full scope of the project before getting involved.

In December 2022 at Art Basel in Miami, Decrypt Studios held the inaugural Crypties awards gala. The evening was hosted by Josh Ostrovsky („The Fat Jewish“) and featured presenters from a range of crypto projects, who awarded statuettes in nine categories. The event was sponsored by Polygon, Filecoin Foundation, Lamina1, Async, BeetsDAO, The Gold Mask, Gem Set, Breakout, Anonymous, Infinite Objects, Ape Water, Decentralized Pictures, and Vault 721.

At Web Summit in Lisbon, Tezos co-founder Kathleen Breitman talked about how the Tezos blockchain has used a proof-of-stake mechanism since its inception. Kathleen expressed her admiration for Tendermint, Ethereum and sharding, and spoke about progressive decentralization and NFT gaming with Decrypt’s Stephen Graves. She also discussed the challenges of raising in a bear market and how to navigate the current climate, alongside Clay Robbins of Slow Ventures, Soona Amhaz of Volt Capital, Sarah Guo of Greylock, Kenzi Wang of AngelBlock, and Laura Shin of Unconfirmed.

Overall, the legal landscape of the crypto industry is complex and ever-changing. It is essential for crypto companies to seek legal advice before launching their projects and to do their due diligence in understanding the scope of their project. Similarly, crypto projects must remain informed about the current market climate and the challenges of raising in a bear market. By staying informed and taking the necessary steps to ensure their projects are successful, crypto companies can make the most out of their investments.

Revolutionizing Gaming: NFTs, Proof-of-Stake, and Sharding Discussed at Web Summit

• Jason Michael Primrose, Amanda Terry, Artemysia-X, and Kas Vegas discussed how to use NFTs for storytelling at Camp Decrypt 2022.
• The Crypties 2022 gala was held in December 2022 at Art Basel in Miami.
• Kathleen Breitman of Tezos spoke about Tezos‘ use of proof-of-stake, Ethereum and sharding, and NFT gaming with Decrypt’s Stephen Graves onstage at Web Summit in Lisbon.

At Camp Decrypt 2022, a lively panel was moderated by What’s Trending podcast host Shira Lazar, featuring Lost Children of Andromeda author Jason Michael Primrose, Amanda Terry of Metagood and ACTAI Ventures, Artemysia-X of Rug Radio program LorePlay, and Kas Vegas of NFT INT, Huxley, and Feature.io. The panel discussed how to use non-fungible tokens (NFTs) to tell compelling stories. Primrose discussed the latest social media trends and how the user experience is being transformed by the use of NFTs. Terry talked about the importance of creating an immersive experience for users and how NFTs can help with that. Artemysia-X talked about the potential of NFTs to bring stories to life in an interactive way, and Vegas discussed the potential for NFTs to create unique collectible experiences.

The Crypties 2022 gala was held in December 2022 at Art Basel in Miami. Hosted by Josh Ostrovsky („The Fat Jewish“), the awards were sponsored by Polygon, Filecoin Foundation, Lamina1, Async, BeetsDAO, The Gold Mask, Gem Set, Breakout, Anonymous, Infinite Objects, Ape Water, Decentralized Pictures, and Vault 721. There were nine categories, with statuettes presented to the winners.

At Web Summit in Lisbon, Kathleen Breitman of Tezos spoke about Tezos‘ use of proof-of-stake, Ethereum and sharding, and NFT gaming with Decrypt’s Stephen Graves onstage. Breitman discussed how Tezos has used a proof-of-stake mechanism since its inception, her admiration for Tendermint, and progressive decentralization. She also discussed the potential for NFT gaming, which could revolutionize the gaming industry. Breitman’s talk was followed by a discussion on raising venture money in a bear market, featuring Clay Robbins of Slow Ventures, Soona Amhaz of Volt Capital, Sarah Guo of Conviction and formerly Greylock, and Alex Strzesniewski of AngelBlock.