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BlockTower Capital Suffers Losses in a Recent Hack, Hacker Unidentified

Published 15/05/2024, 08:00
BlockTower Capital Suffers Losses in a Recent Hack, Hacker Unidentified

Coin Edition -

  • BlockTower Capital has suffered significant losses in a recent hack, according to people familiar with the matter.
  • The hacker and the stolen amount are yet to be identified, and the firm has appointed a team to investigate.
  • Last year, the firm shut down its “market neutral” crypto fund, which once boasted over $100 million.

The institutional investment firm BlockTower Capital has reportedly suffered significant losses from a recent exploitation. A recent Bloomberg report stated that the company’s total loss in the hack remains undisclosed, and the hackers are yet to be identified.

BlockTower was founded in 2017 and has offices in Miami and New York. The firm has invested in various institutions, including the NFT developer Dapper Labs, the blockchain platform Terraform Labs, and the gaming studio Sky Mavis. While the firm raised a $150 million venture fund in 2022, BlockTower boasts around $1.7 billion in assets under management (AuM).

According to the Bloomberg report, the undisclosed fund is still missing. To identify the exploiter and recover the funds, BlockTower has appointed blockchain forensics analysts. The team is supposed to study the hack and find out the exact amount stolen.

In February 2023, decentralized exchange aggregator Dexible reported about a hacker who drained funds from many wallets. While the losses faced by these “few whales” accounted for 85% of the total loss, BlockTower was identified as one of the large victims. Though BlockTower declined to comment then, reports stated that the hacker stole about $1.5 million worth of TRU tokens from a wallet linked to BlockTower.

The report further shed light on the company’s last year setback. BlockTower shut down its “market neutral” crypto fund, which once boasted over $100 million.

Crypto hacks are one of the major threats in the industry that prevent new users from entering the market. Rosco Kalis, founder of Revoke.cash, stated that the users should be adequately educated on crypto to prevent these security threats.

The post BlockTower Capital Suffers Losses in a Recent Hack, Hacker Unidentified appeared first on Coin Edition.

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