BlockTower Capital’s Hedge Fund Partially Drained By Hackers

NAIROBI (Coinchapter.com) – BlockTower Capital, a prominent crypto investment firm managing $1.7 billion in assets, has become the latest victim of a cyberattack, according to a Bloomberg report on May 15, 2024. The firm’s main hedge fund was partially drained by fraudsters, raising concerns about the security of institutional investments in the volatile crypto market.

This incident highlights the vulnerability of major investment firms in the crypto space, a sector often plagued by scams and hacks. Established in 2017, BlockTower Capital holds a significant industry presence, managing $1.7 billion in assets, according to PitchBook. Additionally, their portfolio includes investments in well-known crypto and web3 companies like Dapper Labs, Sky Mavis, and Aptos Labs.

BlockTower Capital and the PEPE Connection

Intriguingly, amidst the security breach, a wallet associated with BlockTower Capital appears to have recently purchased a substantial 202 billion PEPE tokens (valued at $2.22 million) through Cumberland, a prominent crypto liquidity provider. This transaction has raised eyebrows within the crypto community, particularly due to its timing in relation to the reported hack. The wallet address linked to the purchase is currently under scrutiny. Certainly, investigators seek to unravel any potential connections between the two events.

The BlockTower Capital hack serves as a stark reminder that even well-established investment firms are not immune to the risks inherent in the crypto space. As the investigation unfolds, the incident is likely to prompt renewed discussions about security protocols and risk management within the industry. Furthermore, the perpetrators remain at large, and the stolen funds remain unrecovered. The crypto community eagerly awaits further updates on this developing story.

History of Crypto Hacks and Losses

BlockTower Capital’s misfortune adds to a growing list of high-profile cryptocurrency hacks and losses. In February 2023, the firm reportedly lost $1.55 million in TrueFi tokens due to an exploit on a decentralized exchange aggregator. Last year, BlockTower wound down one of its crypto funds, citing a shortage of viable investment opportunities.

The broader crypto landscape has witnessed numerous instances of hacks, exploits, and scams, with retail investors often bearing the brunt. However, the BlockTower Capital incident underscores that even sophisticated institutional players are not invulnerable to such attacks.

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