An $80 million crypto fund is being phased out after its founder went missing in China

BlockBeats news, September 23, according to Fortune, David Gan, a former Huobi employee who was selected for the Asian Forbes Under 30 Elite List in 2019, founded his own venture capital fund, originally named OP Crypto.

In its prime in 2021, the fund attracted heavyweights such as Bill Ackman, Garry Tan and Alan Howard to become limited partners of its $50 million fund. OP Crypto, renamed Inception Capital this year, has performed well, including completing a $30 million fund raise in early 2024 and expanding its assets under management to nearly $100 million, according to the company's latest U.S. SEC filings.

But in May 2024, Gan sent a mysterious email to limited partners (LPs). His father, a retired senior Chinese official from Wuhan, Hubei, China, is under investigation. Gan will go to China to help. That was the last investors heard from him in more than a month.

During Gan’s absence, some confused limited partners said they voted to wind down the fund in his absence in a controlled manner. During the vote, Gan returned, handing over control of the fund’s multi-signature wallet but retaining his position. Today, Inception is at a crossroads, with the firm continuing to manage its holdings but agreeing not to touch the remaining 25% of uninvested funds.

Inception said it plans to formally launch a program in October that would allow limited partners to invest the remaining funds, though that may not be the most attractive option for a firm that has experienced turbulence over the past few months. After pausing investments, Inception laid off half of its staff.