BlockTower Capital with $1.7b in AUM reportedly ‘partially drained’

As a crypto investor who has been following the industry closely for the past few years, I cannot help but feel a pang of disappointment and concern upon hearing about the alleged fraud incident at BlockTower Capital. This firm, founded by Matthew Goetz and Ari Paul in 2017, has made significant strides in the crypto space and has invested in some of the most promising companies in the industry.

It is alleged that BlockTower Capital, a well-known cryptocurrency investment firm, has fallen victim to fraudsters, leading to a significant financial setback for its primary hedge fund.

As a financial analyst, I’ve come across some troubling news regarding BlockTower Capital, a crypto investment firm established by Matthew Goetz and Ari Paul. According to reliable sources close to the situation, as reported by Bloomberg, the company has unfortunately experienced a fraudulent incident that led to a significant withdrawal of funds from its primary hedge fund.

A Miami-based company overseeing approximately $1.7 billion in assets according to data from PitchBook has experienced a theft, but the specific amount stolen and the nature of the attack are still undisclosed. The report indicates that the stolen funds have yet to be retrieved, and the culprit remains unidentified.

According to reports, BlockTower has reportedly contacted blockchain investigation experts to look into the theft, and they have lately shared this news with their investors.

Founded in 2017, this firm has a notable history of investing in prominent crypto industry companies like Dapper Labs, Sky Mavis, and Terraform Labs, which is responsible for creating TerraUSD, the defunct stablecoin. In October 2022, they successfully secured $150 million in funding, with their general partner, Thomas Klocanas, leading the new venture focused on decentralized finance and blockchain infrastructure businesses.

As of press time, BlockTower Capital made no public statements on the recent incident.

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2024-05-15 12:37