(Bloomberg) — Retail investors in cryptocurrencies are often victims of hacking and fraud within the industry. Major investment firms are now accepting the funds.
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Blocktower Capital’s main hedge fund was breached by fraudsters and some funds were leaked, the people said, asking not to be identified as the information is confidential. The company has $1.7 billion in assets under management, according to data provider Pitchbook.
The funds are still missing and the hackers have not been arrested, but the company has hired a blockchain forensic analyst to uncover how the funds were stolen and recently notified its limited partners about the theft. one of them said. BlockTower declined to comment on the hack when contacted by Bloomberg.
Crypto hacks continue to rock the digital asset industry, with fraudsters stealing around $1.7 billion from projects last year, according to research firm TRM Labs.
Founded in 2017, BlockTower has offices in Miami and New York and has invested in companies including non-fungible token developer Dapper Labs, game studio Sky Mavis, and Terraform Labs, creator of the failed TerraUSD stablecoin. I did. The company raised $150 million in venture funding in 2022.
The hack is not the first setback for BlockTower. Last year, the firm scaled back its “market-neutral” crypto fund, which at one time oversaw more than $100 million, after opportunities to invest in the strategy dried up.
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