- BlockTower Capital suffers losses from a recent security breach.
- Firm manages $1.7 billion, launched $150 million fund in 2022.
- Blockchain forensics specialists hired to investigate and recover stolen assets.
BlockTower Capital, an institutional investment firm, has reportedly incurred substantial losses due to a recent security breach. According to a Bloomberg report, the exact amount of the loss from the cyberattack has not been made public, and the perpetrators have not been identified.
Established in 2017, BlockTower has operations in Miami and New York. The firm has made investments in various entities, including NFT creator Dapper Labs, blockchain infrastructure company Terraform Labs, and video game developer Sky Mavis. BlockTower, which launched a $150 million venture fund in 2022, manages approximately $1.7 billion in assets.
The Bloomberg article indicates that the funds lost in the breach have not been recovered. BlockTower has engaged specialists in blockchain forensics to track down the cybercriminals and reclaim the stolen assets. This team is tasked with investigating the breach to determine the precise sum that was taken.
In February 2023, Dexible, a decentralized exchange aggregator, reported a security incident where a hacker siphoned off funds from multiple wallets. The losses these “few whales” incurred represented 85% of the total stolen, with BlockTower being recognized as one of the major victims. Although BlockTower initially refrained from commenting, it was reported that the hacker had exfiltrated around $1.5 million in TRU tokens from a wallet associated with BlockTower.
The report also highlighted a previous challenge faced by the company last year when BlockTower closed its “market neutral” cryptocurrency fund, which had once managed more than $100 million.
Cryptocurrency hacks pose a significant risk to the industry and act as a deterrent for potential new participants. Rosco Kalis, the founder of Revoke. cash, emphasized the importance of providing proper education to users about cryptocurrency to mitigate these security risks.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
