Ex-Alameda Co-Founder's Crypto Trading Firm Lantern Ventures Said to Be Winding Down Funds

Why It Matters

The wind‑down highlights the tightening funding environment and heightened risk aversion in the crypto hedge‑fund sector post‑FTX, potentially reducing market liquidity and prompting investors to reassess exposure to crypto trading strategies.

Summary

Lantern Ventures, the London‑based crypto trading firm founded by former Alameda Research co‑founder Tara Mac Aulay, is winding down its external funds and returning capital to investors after managing roughly $600 million at its peak. The firm has closed to new investment, is exploring a sale or a shift to a family‑office structure, and staff layoffs are expected. An affiliate, Pharos USD Fund SP, was noted as Celsius’ largest creditor with an $80 million claim, underscoring lingering exposure from past crypto lender failures. The move follows a broader pullback in institutional crypto fundraising after the October market crash.