Lantern Ventures, the cryptocurrency trading firm founded by former Alameda Research co-founder Sam Trabucco, is reportedly shutting down its investment funds. The closure marks another significant development in the ongoing aftermath of the FTX/Alameda collapse, as former executives navigate a transformed crypto landscape under intense scrutiny.
Lantern Ventures, the digital asset trading firm established by Sam Trabucco, former co-CEO of the now-defunct Alameda Research, is winding down its operations, according to sources familiar with the matter. The decision to close the funds represents yet another consequence rippling through the cryptocurrency industry following the spectacular collapse of FTX and its sister trading firm.
Trabucco, who co-founded Alameda Research alongside Sam Bankman-Fried and others, departed the quantitative trading firm in August 2022βjust months before FTX's implosion sent shockwaves through global crypto markets. Following his exit, he launched Lantern Ventures as an attempt to continue trading operations independent of the Alameda brand that would soon become synonymous with one of crypto's biggest scandals.
The timing of Lantern Ventures' shutdown raises questions about the viability of trading operations launched by former Alameda executives in the post-FTX era. The crypto trading landscape has fundamentally changed since 2022, with increased regulatory scrutiny, reduced market liquidity, and investors demonstrating heightened caution when allocating capital to firms with any connection to the FTX debacle.
While specific reasons for the wind-down have not been publicly disclosed, industry observers point to several challenges facing crypto trading firms in the current environment. Compressed volatility in digital asset markets has reduced trading opportunities, while institutional investors have become increasingly selective about fund managers' track records and governance structures.
Trabucco himself has maintained a relatively low profile since leaving Alameda, though he was questioned as part of the investigations into FTX's collapse. Unlike some former Alameda executives, he has not faced criminal charges related to the fraud that brought down the exchange.
The closure of Lantern Ventures serves as a reminder that the FTX collapse continues to reverberate throughout the cryptocurrency ecosystem. For former Alameda associates seeking to rebuild careers in crypto trading, the path forward remains challenging, as the industry grapples with rebuilding trust and establishing more robust risk management frameworks in the wake of 2022's catastrophic failures.