Crypto Hedge Fund BlockTower Capital Faces Major Hack
Sources familiar with the matter reported this incident without discussing further sensitive information. According to data provided by PitchBook, BlockTower has more than $1.7 billion in assets under management
BlockTower, a major cryptocurrency hedge fund, has recently experienced a major hack, with fraudsters managing to partially drain from its total AUM. Sources familiar with the matter reported this incident without discussing further sensitive information. According to data provided by PitchBook, BlockTower has more than $1.7 billion in assets under management.
BlockTower takes corrective measures
Currently, the hacker has absconded with the hedge fund, but it has yet to recover its lost money. To find the nature of the theft, BlockTower has employed blockchain forensics analysts. They have also informed all their key partners about the recent heist, according to Bloomberg. However, the crypto hedge fund has yet to release an official statement on this matter.
Founded in 2017, BlockTower operates from its offices in Miami and New York. The company has made strategic investments in various ventures, including nonfungible token developer Dapper Labs, gaming studio Sky Mavis, and Terraform Labs, the creator of the TerraUSD stablecoin. Notably, BlockTower successfully raised a $150 million venture fund in 2022.
This is not the first time that crypto hedge fund BlockTower has faced a setback. Last year in 2023, the country had to shut down its "market-neutral" crypto fund, which handled over $100 million, due to the drying up of investment opportunities for the funds' strategy.
