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BlockTower Capital Hit by Cyber Attack, Faces Financial Loss | CryptoTvplus
BlockTower Capital has expert a security breach where fraudsters gained unauthorized access and managed to withdraw funds from the fund’s accounts. This puts the company which has an asset base of $1.7 billion at risk.
The $1.7 AUM cryptocurrency investment firm suffered a security breach that resulted in the partial drain of its funds.
According to a Bloomberg report, although the funds are still missing and the hacker has not been arrested, BlockTower Capital is employing blockchain forensic analysts to determine how the money was stolen and recently informed its limited partners of the theft.
BlockTower Capital is a crypto-asset investment firm that combines professional trading, investments and portfolio management in the emerging digital asset class.
Founded by Ari Paul and Matthew Goetz in 2017, BlockTower Capital is known for its multidisciplinary approach, combining venture capital and trading strategies across cryptography, game theory and economics.
The company’s mission is to address the complexities of programmable blockchains and responsibly contribute to the development of the globally connected cryptocurrency industry.
In other news, DeFi platform Sonne Finance loses $20 million in crypto exploit to hackers.
BlockTower Capital not only invests in blockchain projects, but also actively participates in the development of blockchain infrastructure, focusing on the future of financial services, including on-chain asset securitization and credit originator support.
Companies and projects such as token developer Dapper Labs, Sky gaming studio Mavis, and Terraform Labs, creator of the failed TerraUSD stablecoin have benefited from BlockTower’s investments.
It’s worth noting that this hack isn’t the first hurdle for BlockTower. Last year, BlockTower Capital decided to shut down its “market-neutral” crypto fund that had managed over $100 million at one point. The market-neutral fund aimed to generate returns regardless of the direction of cryptocurrency prices.
BlockTower cited several reasons for closing the fund and returning capital to investors. Among the reasons listed were the implosion of FTX and its primary hedge fund falling victim to fraud, resulting in losses for the company.
Despite the closure of the market-neutral fund, BlockTower continues to operate and pursue other investment strategies, particularly in the realm of “real world” assets.