Sep 23, 2024, 12:00 AM
Sep 23, 2024, 12:00 AM

crypto fund backed by Ackman shuts down after founder"s silence in China

Provocative
Highlights
  • David Gan, the founder of a crypto fund, went silent for over a month while in China, causing concern among investors.
  • Inception, the firm he leads, is managing its holdings but has paused calling the remaining 25% of uninvested capital.
  • The upcoming plan to address the remaining capital will be critical for the fund's future and investor confidence.
Story

David Gan, the founder of a crypto fund, went silent for over a month while in China, raising concerns among his limited partners (LPs). In May, he sent a mysterious email to his LPs, which has led to uncertainty regarding the fund's future. The firm, Inception, is currently at a crossroads, managing its existing holdings but has decided not to call upon the remaining 25% of capital that has yet to be invested. They plan to introduce a formal investment plan in October, although the options may not be appealing given the recent turmoil. The situation is further complicated by an ongoing investigation into Gan's father, which, while not directly related to the crypto industry, highlights the often complex and fraught relationship between China and the U.S. This dynamic has significant implications for the blockchain sector, affecting various aspects from mining operations to investment strategies. The fund's challenges reflect broader issues within the crypto market, particularly in light of geopolitical tensions. Investors are increasingly cautious, and the uncertainty surrounding Gan's situation has only amplified these concerns. As the firm navigates this difficult period, the upcoming plan for the remaining capital will be crucial in determining the fund's viability and the confidence of its LPs moving forward. The outcome of this situation could have lasting effects on investor sentiment in the crypto space, especially regarding funds with ties to China.

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