Crypto investment firm BlockTower Capital has reportedly been targeted by fraudsters, resulting in a partial loss of funds from its main hedge fund.
BlockTower Capital, a crypto investment firm founded by Matthew Goetz and Ari Paul, has allegedly fallen victim to fraud, leading to a “partial drain” of its main hedge fund, according to Bloomberg, which cited sources familiar with the situation.
The Miami-based firm manages around $1.7 billion in assets, according to data provider PitchBook. However, the exact amount of stolen funds and the method of the attack remain unclear. The report indicates that the missing funds have yet to be recovered, and the perpetrator is still at large.
Sources claim that BlockTower has engaged blockchain forensics analysts to investigate the theft and has recently informed its limited partners about the incident.
Founded in 2017, BlockTower Capital has invested in several well-known companies in the crypto industry, including Dapper Labs, Sky Mavis, and Terraform Labs, the creator of the failed TerraUSD stablecoin. In mid-October 2022, the firm raised $150 million, with general partner Thomas Klocanas leading the new venture focused on decentralized finance and blockchain infrastructure companies.
As of now, BlockTower Capital has not made any public statements regarding the incident.
Summary Review: BlockTower Capital, a prominent crypto investment firm managing $1.7 billion in assets, has reportedly suffered a significant loss due to fraud, resulting in a partial drain of its main hedge fund. The exact details of the theft, including the amount stolen and the method used, remain unclear. BlockTower has engaged blockchain forensics experts to investigate and has informed its limited partners of the incident. As the firm has yet to make a public statement, the situation underscores the persistent risks and challenges in the cryptocurrency investment landscape, even for established firms.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
