Crypto investment firm BlockTower Capital has reportedly been targeted by fraudsters, resulting in a partial loss of funds from the firm’s main hedge fund.

BlockTower Capital, a crypto investment firm founded by Matthew Goetz and Ari Paul, has allegedly fallen victim to fraudsters, resulting in a “partial drain” of its main hedge fund, according to Bloomberg, which cited sources familiar with the matter.

The Miami-headquartered firm manages around $1.7 billion in assets, as per data provider PitchBook, although the exact amount of stolen funds nor the method of the attack remains unclear so far. The report says the missing funds have yet to be recovered, and the perpetrator remains at large.

The sources claim that BlockTower has reached out to blockchain forensics analysts to investigate the theft and has recently informed its limited partners about the incident.

Established in 2017, the firm has made investments in many well-known companies in the crypto industry such as Dapper Labs, Sky Mavis, and Terraform Labs, the creator of the failed TerraUSD stablecoin. In mid-October 2022, the firm raised $150 million with its general partner Thomas Klocanas in charge of the new venture aimed at decentralized finance and blockchain infrastructure companies.

As of press time, BlockTower Capital made no public statements on the recent incident.