According to a Wednesday report According to Bloomberg, cryptocurrency investment firm BlockTower Capital’s main hedge fund has been the victim of a hacking incident.
According to a Wednesday report According to Bloomberg, cryptocurrency investment firm BlockTower Capital’s main hedge fund has been the victim of a hacking incident.
The stolen money has not yet been recovered. BlockTower Capital is currently working with blockchain detectives to uncover how the hacking incident occurred. The report has not specified how much property has been stolen.
BlockTower Capital was co-founded in 2017 by former university endowment manager Ari Paul and former investment banker Matthew Goetz. In 2021, it acquired rival Gamma Point Capital to launch its market-neutral fund. However, the fund closed last year due to a lack of investment opportunities. BlockTower officially launched its $150 million venture capital fund in October 2022.
The cryptocurrency investment company has previously been hit by hacking incidents. In February 2023, BlockTower Capital was hit by the $1.5 million hack of decentralized exchange aggregator Dexible.
BlockTower Capital suffered another setback due to its exposure to Silvergate Bank and Signature Bank, two cryptocurrency-friendly banks that failed last March.
Cryptocurrency hacks affecting the industry
Cryptocurrency hacks remain a major problem for the nascent cryptocurrency industry. In 2022, hackers stole a whopping $4 billion. Last year, the amount of stolen funds reached $2 billion. Some of the most notable cryptocurrency victims of 2023 include Mixin Network, Euler Finance, Multichain, Atomic Wallet, and Poloniex.
Meanwhile, according to UN experts, North Korea managed to launder almost $150 million in stolen cryptocurrencies in March alone.