As a long-term crypto investor with experience in the industry, I can’t help but feel a sense of unease every time I read about another major hacking incident, such as the one affecting BlockTower Capital. These events serve as stark reminders of the risks that come with investing in cryptocurrencies.
A hacking incident reportedly targeted and resulted in the breach of BlockTower Capital’s primary cryptocurrency hedge fund, as mentioned in a report published on Wednesday by Bloomberg.
The stolen funds remain missing as BlockTower Capital collaborates with blockchain detectives to unravel the details of the hacking event. The exact quantity of pilfered assets is yet to be disclosed in the official report.
Back in 2017, Ari Paul, a former university endowment manager, and Matthew Goetz, a ex-investment banker, established BlockTower Capital. In 2021, they merged with Gamma Point Capital to introduce a market-neutral fund. Unfortunately, this fund had to be closed down the following year due to insufficient investment possibilities. BlockTower then debuted its $150 million venture capital fund in October 2022.
BlockTower Capital, a cryptocurrency investment firm, has previously experienced hacking incidents. Specifically, in February 2023, they were victims of a $1.5 million hack on the decentralized exchange aggregator, Dexible.
As a crypto investor following the developments in the industry, I’ve been disappointed to learn about another setback for BlockTower Capital. This time, their woes stem from their exposure to Silvergate Bank and Signature Bank – two financial institutions known for their cryptocurrency-friendly approaches. Unfortunately, both banks encountered significant financial difficulties last March, leaving an impact on BlockTower’s investments.
Crypto hacks plaguing the industry
As a researcher studying the cryptocurrency landscape in 2023, I’ve observed that security breaches continue to pose significant challenges for the evolving digital currency sector. In the past year alone, hackers have successfully pilfered approximately $4 billion in cryptocurrencies. Previously, the stolen funds amounted to around $2 billion in 2022. Some high-profile victims of these attacks include Mixin Network, Euler Finance, Multichain, Atomic Wallet, and Poloniex.
During the month of March, as reported by UN authorities, North Korea is believed to have laundered approximately $150 million in stolen cryptocurrency.
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2024-05-15 08:46