BlockTower Capital Hit by Fraud, Partial Fund Drain Reported

Crypto investment firm BlockTower Capital has reportedly been targeted by fraudsters, resulting in a partial loss of funds from the firm’s main hedge fund.

BlockTower Capital, a crypto investment firm founded by Matthew Goetz and Ari Paul, has allegedly fallen victim to fraudsters, resulting in a “partial drain” of its main hedge fund. The Miami-headquartered firm manages around $1.7 billion in assets, although the exact amount of stolen funds and the method of the attack remain unclear. The missing funds have yet to be recovered, and the perpetrator remains at large.

Sources claim that BlockTower has reached out to blockchain forensics analysts to investigate the theft and has recently informed its limited partners about the incident.

Established in 2017, BlockTower Capital has made investments in well-known companies in the crypto industry such as Dapper Labs, Sky Mavis, and Terraform Labs.

In mid-October 2022, the firm raised $150 million with its general partner Thomas Klocanas in charge of the new venture aimed at decentralized finance and blockchain infrastructure companies. As of now, BlockTower Capital has made no public statements on the recent incident.

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