This Crypto Hedge Fund Is Being Revived After FTX Contagion Killed It

After the FTX contagion led to its initial demise, the crypto hedge fund – LedgerPrime made a remarkable comeback. Now operating under a new name – MNNC Group, the Cayman Islands-registered, multi-strategy hedge fund has successfully raised an undisclosed amount from backers.

This includes those who invested in its previous incarnation, underscoring a strong vote of confidence from its financial supporters.

Despite not attracting all former investors, MNNC Group managed to secure funding in the “mid-eight-figures,” according to Shiliang Tang, general partner and special advisor to the group. Still, the exact figure remains undisclosed.

January saw the launch of MNNC Group’s flagship quantitative market neutral strategy fund, which closed the month with a promising 4% return, as stated by Laura Vidiella del Blanco, head of business development and strategy. The firm’s new directional fund is eagerly anticipated for a March launch.

According to Ayesha Kiani, the COO at MNNC Group, a key to the firm’s revival is its impeccable track record.

“The other thing obviously worked in our favor is that we weren’t at fault with FTX. We have returned outside capitals in September 2022,” Kiani said.

This distinction is crucial, especially in a market that values trust and past performance. Most of the team, including Vidiella del Blanco and Kiani, are LedgerPrime veterans, ensuring continuity and expertise. New hires, such as Boris Iyutin from Tower Research Capital, are set to bring fresh perspectives and bolster the fund’s strategic direction.

MNNC Group’s journey is a narrative of renewal and strategic foresight. With plans to expand its team in anticipation of new strategies, the firm is positioning itself for growth in a volatile market. LedgerPrime managed up to $400 million in assets at its zenith, boasting an average annual return of around 40%.

Read more: Crypto Hedge Funds: What Are They and How Do They Work?

However, the aftermath of the FTX contagion extends beyond MNNC Group. The crypto industry continues to reel from the shockwaves, with Geneva-based Tyr Capital Partners entangled in a $22 million legal challenge. This lawsuit underscores the perils of crypto investments and the cascading effects of FTX’s collapse.

Meanwhile, FTX is navigating bankruptcy proceedings, with plans to liquidate assets, including a significant stake in AI firm Anthropic. This move is a step towards repaying creditors and stabilizing the firm’s financial woes.

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