Lantern Ventures, a London-based proprietary trading firm founded by former members of Sam Bankman-Fried’s Alameda Research, is winding down its funds after seven years in business, according to two people familiar with the project.
The crypto investment firm is in the process of returning capital to investors and is closing its external funds, a person familiar with the matter said. According to a second person, a number of hedge fund employees risk losing their jobs.
The company was reportedly in talks with potential buyers. Other alternatives include relaunching under a family office structure.
At its peak, Lantern, led by crypto trader and former Alameda co-founder Tara Mac Aulay, had more than $600 million in assets under management. MacAuley declined to comment.
An affiliate called Pharos USD Fund SP, a Cayman Islands-based investment fund, was listed as Celsius’ largest creditor at the start of the crypto lender’s bankruptcy proceedings in 2022, with a claim of around $80 million.
Before becoming a full-time trader, Mac Aulay was CEO of the Center for Effective Altruism, a philanthropic project that FTX boss Bankman-Fried was also aligned with.
Lantern was also founded on philanthropic principles, with 50% of the founder’s profits going to high-impact charitable causes.
The October 10 crypto market crash has made institutional fundraising more difficult these days, many said.
