Crypto hedge fund LedgerPrime will return outside capital to investors

Crypto hedge fund LedgerPrime plans to return all outside capital to investors as part of its transition to a family office.

LedgerPrime was part of Ledger Holdings, which was acquired by FTX in the fourth quarter of Last year. There seems to be a high probability that LedgerPrime will now leave FTX and become a subsidiary of Alameda Research. Because Alameda Research is a family office, LedgerPrime will no longer be able to retain fund status, according to a letter to investors written by LedgerPrime Chief Investment Officer Shiliang Tang and viewed by Seeking Alpha.

LedgerPrime will have to buy out all of its LP investors on their behalf and the current entity will only manage the capital on behalf of Alameda Research. If the transition is decided, probably in the next few days, redemptions will take place at the end of the month and investors will recover their capital in full in October, according to the letter.

Tang was not immediately available for comment.

LedgerPrime has assets under management of $300 million to $400 million, according to a person familiar. The LedgerPrime name and entity will remain, along with everyone else within the company and will operate independently with the same strategies as before.

Recall from August last year, President of FTX.US: LedgerX buys part of the strategy to become the exchange for everything.