BlockTower Capital Hedge Fund Suffers Hack, Sources Reveal

The cryptocurrency hedge fund BlockTower Capital has suffered an undisclosed loss due to a hacker attack. The incident was reported by informed sources to Bloomberg.

According to PitchBook, the company manages assets worth $1.7 billion.

The perpetrators remain at large.

The firm has hired blockchain forensic analysts to investigate.

BlockTower declined to comment on the breach.

In February 2023, the organization was previously targeted by hackers, resulting in a $1.55 million loss in TrueFi tokens.

Earlier, the company closed a market-neutral fund that once managed over $100 million in assets, according to Bloomberg.

Founded in 2017, BlockTower Capital has invested in notable cryptocurrency and Web3 firms such as Dapper Labs, Sky Mavis, Aptos Labs, and Maple Finance, according to Dealroom.

In October 2022, the company launched a structure with an AUM of $150 million.

A month prior, market maker Wintermute lost $160 million in assets due to a hacker attack.

Experts linked the incident to a vulnerability in the Ethereum address generator.