Sam Bankman-Fried, founder of FTX, worked at Jane Street Capital

Sam Bankman-Fried, founder of FTX, worked at Jane Street Capital

Sam Bankman-Fried, who founded FTX, misplaced $8 billion and pleading not guilty to seven charges of fraud and conspiracy, worked at Jane Street Capital.

And he wound up responsible for the single worst loss, to the tune of $300 million, according to Michael Lewis, the founder of quantitative trading firm FTX.

Bankman-Fried joined Jane Street, where he was paid $300,000 in his first year, and was given a $1 million salary before leaving to start Alameda Research in 2017.

Jane Street's traders were confident that the world's stock markets would tank if Donald Trump were elected president. To get ahead of its competitors, Bankman-Fried put in charge of a project to design a system that would predict the results, Lewis said.

Bankman-Fried assigned different traders to focus on voting data from different states. And it worked, said Jane Street, who was typically calling states minutes before CNN - sometimes hours earlier - so it could place bets before other traders responded to the news.

The most dramatic moment happened in the Florida panhandle, where Jane Street called five minutes before CNN. It was so pro-Trump that it swung his chances of winning from 5% to 60% on Jane Street's system.

Bankman-Fried told his biographer that 't a typo and say s sell'.

Jane Street bet several billion dollars against the S&P 500 and $250 million against other countries' stock markets, per Lewis' book. And it appeared set to be one of its most profitable ever trades, as Bankman-Fried went to sleep.

The US stock market had risen after two hours of trading on Monday.

Bankman-Fried's spokeswoman and Jane Street did not immediately respond to Insider's requests for comment, sent outside the U.S. working hours.