- Crypto investment firm BlockTower Capital has fallen victim to a hack.
- Compromised assets are undisclosed.
- BlackTower Capital suffered a similar loss last year.
Hacks and scams in the crypto industry are the dark side of the ecosystem, marked by malicious actors who plague the asset class for selfish gain. This year, nearly $105 million has been lost to various attacks, leaving investors and service providers alike to grapple with significant losses.
These malicious acts show no signs of abating, as a major investment firm becomes the latest victim.
BlackTower Capital’s Hack Crisis
In the early hours of Wednesday, May 15, Bloomberg reported a hack on BlackTower Capital’s main hedge fund. Citing anonymous sources familiar with the matter, the report stated that the fund was compromised by fraudsters, resulting in the siphoning in the loss of funds.
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While the amount lost was unspecified, Bloomberg stated that the firm, which has $1.7 billion in assets under management, has employed blockchain forensics analysts to determine the funds compromised.
The recent hack is not the first cyber attack on the crypto investment firm. In February 2023, BlockTower reportedly fell victim to a similar exploit, losing up to $1.55 million worth of assets. Bloomberg also added that the firm wound down a “market-neutral” crypto fund in the same year, which once managed over $100 million worth of assets.
At press time, the funds stolen from the BlockTower Capital hack are still missing, and the hacker has not been apprehended.
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Read more on a similar cyberattack that impacted Sonne Finance:
Sonne Finance Loses $20M to “Known Donation Attack”
This exchange is expanding into Australia with retail and institutional services. Read more:
OKX Expands Global Presence with New Australian Exchange
