BlockTower Capital’s Primary Hedge Fund Falls Victim to Fraud

The NFT Unicorn hack_cover BlockTower Capital’s Primary Hedge Fund Falls Victim to Fraud Crypto News

BlockTower Capital’s primary hedge fund has fallen victim to fraudsters, who have managed to drain its assets partially.

According to the Bloomberg report, the stolen funds have not yet been recovered, and the perpetrator remains at large. However, one source revealed that the firm roped in blockchain forensics experts to investigate the theft and recently informed its partners about the incident.

  • The latest development suggests that even a major investment firm is not immune to threats that mostly prey on retail investors.
  • Interestingly, BlockTower Capital lost nearly $1.5 million after the exploit of decentralized exchange aggregator Dexible last February.
  • The wallet address in question linked to the Dexible exploiter drained approximately $1.5 million in TRU tokens from a wallet identified as BlockTower’s by Arkham Intelligence. Nansen also confirmed the wallet was labeled as BlockTower Capital.
  • The company shut down its “market-neutral” crypto fund last year due to a shortage of viable investment opportunities.
  • In addition to BlockTower’s exploit, a lesser-known decentralized lending protocol called Sonne Finance was also exploited that resulted $20 million in losses.
  • In its post-mortem report, Sonne stated that its team discovered the issue 25 minutes after the exploit occurred. Although they couldn’t recover the funds, the investigation into the exploiter’s identity is currently underway.
  • The protocol also mentioned they are willing to offer a bounty to the exploiter and commit to not pursuing the matter further if the funds are returned.
SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!



Source: CryptoPotato