BlockTower Capital, an investment firm with $1.7bn in AUM, has experienced a security breach in its main hedge fund, leading to partial losses, according to a report by Bloomberg citing people familiar with the matter. 

According to Bloomberg’s sources, the stolen funds have not been recovered and the hacker has not been caught. The firm has engaged blockchain forensics analysts to investigate the theft and has informed its LPs about the incident.

The breach comes after approximately $1.7bn of funds were stolen from crypto projects last year, according to research firm TRM Labs.

BlockTower was established in 2017 and maintains offices in Miami and New York. Its investments include nonfungible token developer Dapper Labs, gaming studio Sky Mavis and Terraform Labs, the creator of the unsuccessful TerraUSD stablecoin.

In 2022, BlockTower raised a $150m venture fund. Last year, the company closed its “market-neutral” crypto fund, which had managed over $100m at its peak, due to a lack of investment opportunities.