KEY POINTS
- LedgerPrime is now MNNC Group and some of its team members are former staff of the FTX-acquired fund
- MNNC Group's investors include some who previously invested in LedgerPrime
- The team includes former LedgerPrime chief investment officer Shiliang Tang
Crypto hedge fund LedgerPrime, which was forced by court to wind down amid the bankruptcy of collapsed cryptocurrency exchange FTX, has bounced back under a new name: MNNC Group, a new report revealed.
LedgerPrime, a subsidiary of Ledger Holdings, which was acquired by FTX U.S. in 2021, has restarted with several ex-employees of the hedge fund to form MNNC Group, Bloomberg reported Thursday. MNNC Group raised an undisclosed amount of funds from backers that include those who invested in the previous fund, as per the report.
Among the MNNC Group's 11 team members is Shiliang Tang, LedgerPrime's former chief investment officer. The company, which is now registered in Cayman Islands, looks to either duplicate or surpass the 40% annualized return rate that LedgerPrime achieved at its peak.
About a month before FTX collapsed to the crypto industry's shock, Tang wrote in an investor letter that the fund can no longer maintain its hedge fund status, according to Seeking Alpha, which viewed the letter. At the time, there was "strong likelihood" that the hedge fund will break away from FTX and instead become a subsidiary of Alameda Research, FTX's sister company.
Tang also revealed in the September 2022 investor letter that it was looking to return all outside capital to investor as it transitions to becoming part of a family office. Alameda Research was a family office before it also filed bankruptcy alongside FTX in November 2022.
A person familiar with the hedge fund told the outlet that at the time of its planned transition, it had assets under management (AUM) of $300 million to $400 million.
Tang also clarified to Cointelegraph that "nothing is changing" and LedgerPrime was "not shutting down." He said the fund will still operate independently and all staffers will remain. The only change will be the return of outside capital.
Meanwhile, FTX's downfall journey continues as the fallen crypto exchange said last month that it was no longer pursuing a restart of operations. Instead, it will liquidate all assets so it can repay customers affected by the exchange's collapse.
The new FTX management expects to repay all affected clients in full, but its payment calculations will be based on crypto prices from November 2022, FTX attorney Andy Dietderich said during a bankruptcy hearing.
He noted that "FTX was an irresponsible sham created by a convicted felon," Sam Bankman-Fried, who was found guilty in all seven charges of wire fraud and conspiracy last year. The disgraced crypto titan is faced with up to 110 years in prison and is due for sentencing on March 28.
