Media: crypto firm BlockTower Capital’s leading hedge fund has been hit by an exploit

The company has engaged blockchain analysts to search for vulnerabilities

15.05.2024 - 15:30

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2 min

What’s new? Crypto investment firm BlockTower Capital, with $1,7 billion in assets under management, suffered losses as a result of a hack on its main hedge fund, Bloomberg reports, citing anonymous sources. At the moment, the identity of the hacker has not been established, and the company has hired blockchain analysts to find the vulnerability that allowed the hack to take place.

Material by Bloomberg

What else is known? BlockTower has not publicly reported the incident, and sources have not named the amount of damage. At the same time, the company informed its partners privately.

Last year, the company closed one of its crypto funds, which momentarily controlled more than $100 million, after investment opportunities for the strategy dried up.

BlockTower was founded in 2017 and has offices in Miami and New York. It invested in NFT platform Dapper Labs and gaming studio Sky Mavis, as well as stablecoin developer TerraUSD and token LUNA, whose collapse in May 2022 caused tens of billions of dollars in losses for investors worldwide, and crypto fund Protocol Ventures, whose investors lost 90% of their funds in late 2022.

In 2024, BlockTower participated in the issuance of tokenized US Treasury bills on the PV01 platform.

PV01 platform will start issuing tokenized bonds of crypto companies

It issued a US Treasury bond token as a pilot project

Earlier, PeckShield reported that by the end of April, the damage from crypto hacking decreased by 67% for the month and amounted to $60,2 million. The largest incident in April was the Hedgey platform contract exploit for $47,35 million, the damage from other attacks from the top 5 varies from 1 to 3 million.

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