BlockTower Capital’s flagship hedge fund is a victim of fraud

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

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

The latest development suggests that even a large investment firm is not immune to threats that mostly prey on retail investors. Interestingly, BlockTower Capital lost almost $1.5 million after the explode of decentralized exchange aggregator Dexible last February. The wallet address in question linked to the Dexible exploit drained approximately $1.5 million in TRU tokens from a wallet identified as BlockTower by Arkham Intelligence. Nansen also confirmed that the wallet was labeled as BlockTower Capital. The company closed its “market neutral” crypto fund last year due to a dearth of viable investment opportunities. In addition to the BlockTower exploit, a lesser-known decentralized lending protocol called Sonne Finance was also exploited resulting in $20 million in losses. In his post-mortem report, Sonne stated that his team discovered the problem 25 minutes into the exploit. Although they were unable to recover the funds, the investigation into the exploiter’s identity is ongoing. The protocol also mentioned that they are willing to offer a reward to the exploiter and promise not to continue the matter if the funds are returned. SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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