BlockTower Capital, a prominent crypto investment firm, has experienced a significant security breach resulting in the partial draining of its main hedge fund, according to a Bloomberg report. The report, which cites sources familiar with the matter, reveals that the firm’s assets remain missing, and the perpetrators have yet to be apprehended.

Bloomberg's report from Wednesday indicated that the hedge fund had been compromised, but the exact amount of funds stolen has not been disclosed. In response to the attack, BlockTower has engaged blockchain forensics experts to conduct a thorough investigation. However, the firm has not provided immediate comments to The Block's inquiries regarding the incident.

This breach is not the first setback for BlockTower Capital. In February 2023, the firm suffered a loss of $1.55 million in TrueFi tokens due to an exploit, as reported by The Block. Additionally, last year saw the winding down of a crypto fund that once managed over $100 million in assets, further highlighting the challenging landscape faced by the firm.

Founded in 2017, BlockTower Capital has built a reputation for its strategic investments in notable crypto and web3 companies. Its investment portfolio includes high-profile firms such as Dapper Labs, the creators of NBA Top Shot; Sky Mavis, the developer behind the popular game Axie Infinity; and Aptos Labs, a startup focused on building scalable blockchain solutions.

The recent security breach underscores the persistent risks and vulnerabilities within the crypto investment sector. As BlockTower Capital works to recover from this latest incident, it also highlights the critical importance of robust security measures and the ongoing threat posed by sophisticated cybercriminals targeting the burgeoning crypto industry.