Hedge funds usually have an administrator who holds the money. This is a big, reputable organisation, usually tied to a bank and heavily regulated. it permits the fund to trade within a narrow mandate agreed with fund investors. If the HF managers disappear, the assets, perhaps with heavy losses, remain with the administrator. The administrator answers first and foremost to fund investors.
The article suggests, and it's not uncommon with crypto hedge funds, that funds were held in private wallets. So if Su Zhu disappears one day with his Ledger, that's that.
Having external administrators for classic HFs wasn't the norm until Bernie Madoff (who didn't have an administrator), funny that.
The article suggests, and it's not uncommon with crypto hedge funds, that funds were held in private wallets. So if Su Zhu disappears one day with his Ledger, that's that.
Having external administrators for classic HFs wasn't the norm until Bernie Madoff (who didn't have an administrator), funny that.