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US cryptocurrency fund collapses and investor loses R $ 1.3 million


One investor found out just how volatile cryptocurrency markets can be, after losing his $ 250,000 ($ 1.3 million) investment in hedge funds in just a few days, according to the Financial Times.

Last year, Vlad Matveev, 50, a former fund manager, invested $ 250,000 in a hedge fund operated by Cryptolab Capital. The California hedge fund has promised to generate “excellent returns” by investing in crypto assets through trading.

While the hedge fund managed to gradually increase its net asset value and showed strong performance before Matveev's investment, signs of trouble began to form almost immediately afterwards. According to a publication by Matveev on Medium, the company began to see its equity value stagnate and eventually fell to the same level as before Matveev made his investment. It was then that he knew it was time to leave.

“I invested in June 2019 and the fund's good performance is over. The fund's equity was contracting, and at the end of February 2020 it remained almost at the same level I entered. That was when I decided to recover my money ”, said the investor in the publication.

On March 8, 2020, Matveev asked to cancel participation in the fund. Two days later, he received a response from Cryptolab Capital notifying him that the fund suffered losses of 20%, but Matveev still wanted to leave. Two more days passed, and Cryptolab Capital said it had lost 100% of its assets under management and would be liquidated.

The days in question coincided with the fateful 50% drop that bitcoin suffered in just 24 hours.

Matveev suspects that the entire history of the fund may have been an elaborate ploy to steal capital from investors. On the blog, he made several charges against the company and the people who ran it.

"I suspect that such a spectacular loss of the fund is not a coincidence," he said.

* Translated and republished with authorization from

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