One of the most significant cryptocurrency hedge funds, BlockTower, recently experienced a substantial hack in which thieves could steal some of its assets under management. Sources who know the situation disclosed this incident but would not discuss more private information. PitchBook data indicates that BlockTower is managing assets worth over $1.7 billion.
BlockTower Implements Corrective Actions
The hacker has fled, but the hedge fund’s money is still missing. Nevertheless, BlockTower has hired blockchain forensics analysts to determine the extent of the theft. According to Bloomberg, they have also told all their important partners about the most recent robbery. However, the cryptocurrency hedge fund still needs to make an official statement.
BlockTower was founded in 2017 and is based in Miami and New York. The business has strategically invested in several companies, including Dapper Labs, a maker of nonfungible tokens; Sky Mavis, a game studio; and Terraform Labs, the company that created the TerraUSD stablecoin. Interestingly, in 2022, BlockTower raised a $150 million venture fund.
This is not the first time crypto hedge firm BlockTower has faced a setback. Last year, in 2023, the country had to shut down its “market-neutral” crypto fund, which managed over $100 million, as the investment prospects for the funds’ strategy dried up.
An Increase in Cryptocurrency Hacks
According to reports, the market has seen an increase in cryptocurrency hacking instances lately. Most hacks have been carried out by the infamous North Korean Lazarus Group, which uses cryptocurrency-mixing sites like Tornado Cash.
A con artist took over $71 million worth of $WBTC coins just last week. However, they were later recovered.
On April 29, 2024, a significant attack against the well-known Bahraini exchange “Rain” seriously affected the cryptocurrency ecosystem. This breach caused the loss of $14.8 million in XRP, ETH, SOL, and BTC.
ZachXBT, a blockchain expert, discovered suspicious activity on Rain’s platform that raised the possibility of an impending security breach, which is how he discovered the hack.
