BlockTower Capital’s Primary Hedge Fund Falls Victim to Fraud
Data from PitchBook indicates that the company manages $1.7 billion in assets.
BlockTower Capital’s primary hedge fund has fallen victim to fraudsters, who have managed to drain its assets partially.
According to the Bloomberg report, the stolen funds have not yet been recovered, and the perpetrator remains at large. However, one source revealed that the firm roped in blockchain forensics experts to investigate the theft and recently informed its partners about the incident.
- The latest development suggests that even a major investment firm is not immune to threats that mostly prey on retail investors.
- Interestingly, BlockTower Capital lost nearly $1.5 million after the exploit of decentralized exchange aggregator Dexible last February.
- The wallet address in question linked to the Dexible exploiter drained approximately $1.5 million in TRU tokens from a wallet identified as BlockTower’s by Arkham Intelligence. Nansen also confirmed the wallet was labeled as BlockTower Capital.
- The company shut down its “market-neutral” crypto fund last year due to a shortage of viable investment opportunities.
- In addition to BlockTower’s exploit, a lesser-known decentralized lending protocol called Sonne Finance was also exploited that resulted $20 million in losses.
- In its post-mortem report , Sonne stated that its team discovered the issue 25 minutes after the exploit occurred. Although they couldn’t recover the funds, the investigation into the exploiter’s identity is currently underway.
- The protocol also mentioned they are willing to offer a bounty to the exploiter and commit to not pursuing the matter further if the funds are returned.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
0% fee EUR deposit — Share 1 million USDT!
First come, first served: Users can earn up to 25% rebate in USDT when depositing at least $200 worth of EUR via bank deposit with 0% fees! Join Promotion period: November 15, 15:59:59 – December 14, 15:59:59 (UTC) Rules Register using the Join button. Deposit at least $200 worth of EUR via bank de
Don’t be delusional: Decentralization doesn’t compensate for regulation
Pennsylvania bill proposes 10% Bitcoin reserve for treasury
Solana leads 2024 blockchain traffic with 38.79% share