The US government may have uncovered another component of Sam Bankman’s cryptocurrency company Fried thanks to its investigation.

According to The New York Times, federal prosecutors in the United States have charged that Bankman-Fried invested money from the FTX exchange into the venture capital (VC) business Modulo Capital using funds obtained from the FTX exchange.

It was previously stated that SBF’s hedge fund and FTX’s sister company, Alameda Research, spent a total of $400 million on Modulo in 2022. This was one of SBF’s largest investments and became one of the largest investments most prominent in general.

The fact that Modulo, a relatively unknown company, was able to raise a considerable amount of cash amid difficult times for the cryptocurrency market caught the attention of authorities, who have shown particular interest in fundraising.

Based on the most recent information obtained by detectives working for SBF, the investment in Modulo was most likely made using the proceeds of a crime or with money that had been stolen from FTX clients and placed on the exchange.

According to the authorities, Modulo had become an essential component of the investigation.

As FTX lawyers fight to collect billions of dollars owed to repay their clients, investors and other creditors, Modulo’s assets are apparently coming into focus of their investigation.

So far, the location of the SBF’s $400 million investment has not been disclosed.

Modulo Capital was created in March 2022 by three former executives from Jane Street, a New York-based company that had employed Bankman-Fried and Alameda CEO Caroline Ellison.

Duncan Rheingans-Yoo, who was reportedly one of the founders, had reportedly just graduated from college.

Xiaoyun Zhang, sometimes known as Lily, was another of Modulo’s co-founders. She had worked as a trader on Wall Street in the past and had some connections to SBF.

It is also common knowledge that Modulo operates its business from the same condominium complex in the Bahamas that SBF operated from.

The disclosure comes at a time when a commissioner for the United States Commodity Futures Trading Commission, Christy Goldsmith Romero, is questioning the work that the venture capitalists and money managers who sponsored FTX did in terms of your due diligence.

Earlier, Singapore’s deputy prime minister confirmed that Singapore government-controlled investment firm Temasek risked “reputational damage” as a result of its investment in FTX.