A 50-year old ex-fund manager Vlas Matveev, has recorded a loss of $250,000 to a US-based hedge fund company Cryptolab Capital after a news that the company is liquidating.
The Cryptolab Capital, a mixed-strategy investment firm, was said to have attracted investors with the promise of outstanding returns on their investments regardless of the market performance. The hedge fund company boasted to invest in cryptocurrencies using a data-heavy approach to trading.
Matveev got swayed by these heavy promises and vested $250,000 into a Cryptolab Capital-managed hedge fund in June 2019.
The recent drop in the BTC price brought shockwave to a large number of funds, sending numerous of investment companies into folding up with a huge loss, especially those who had placed their business on a high level of risk.
Vlad Matveev learned how volatile the crypto market could be in a hard way as the fund’s Net Asset Value (NAV) moved back and forth after investing hugely in the hedge fund. Although the hedge fund’s NAV displayed profitability before the ex-fund manager vested his money into it, the situation changed afterward.
Since then, the fund had struggled to maintain balance and at the end of February 2020 Matveev was yet to record any profit. He later decided to opt out of the investment, and by March 8, Matveev requested withdrawal of his fund, the financial times has said.
Two days afterward, the hedge fund’s NAV plummeted, and the exchange told him that his fund had suffered 20% losses. To make things worse, salt was added to Matveev’s injury as Cryptolab Capital messaged him after another two days that the company asset suffered 100% losses and it plans liquidation.
This all happened before the Bitcoin halving that took place in May. While investors are yearning for growth in Bitcoin’s price because of the cut in miner’s reward, Matveev continues to grieve over his losses which may likely be his lifetime savings.
Matveev however has raised allegations against the company and its management; he said the company’s claims could be a ploy to rip investors of their funds.