Crypto fund Neural Capital closes after losing investors' funds

Cryptocurrency hedge fund Neural Capital closed without notifying the general public, CoinDesk writes withciting sources familiar with the situation.

The fund has lost half its capital since launching in 2017 and is now returningAccording to sources, Neural Capital's cryptocurrency assets were liquidated in December, and part of the fiat currency is still in escrow accounts, which violatespreviously announced deadlines of several months.

By 2019 managed by Neural Capitalthere were more than $ 13 million in assets. Its investors were over 40 people, including Greylock partner Joshua Elman and Expa partner Human Radfar, each of whom invested at least $ 250,000.

In December, the fund withdrew registration from the US Securities and Exchange Commission (SEC), and this year stopped submitting mandatory reports to the California authorities and the federal agency.

Fund Managers Ariy Nazir and Christopher Keshianhave no previous experience in the hedge fund industry. After launching Neural Capital, they became consultants for Protocol Ventures, which has invested in a variety of cryptocurrency funds, including Neural Capital. Keshian also founded Apex Capital, a fund of funds similar to Protocol Ventures. Apex Capital never launched because it was unable to reach the minimum target of $ 100 million when selling its own tokens.

Keshian left Neural Capital by 2019. He said that since then he has not maintained contacts with Nazir and is working on projects about which he is not yet ready to disclose information.

Thus, Neural Capital joinsa series of crypto funds that opened at the peak of the cryptocurrency boom in 2017 and recently ceased to exist, the most notable examples of which are Adaptive Capital, Prime Factor Capital and Tetras Capital.

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