Inception Capital, an $80 million cryptocurrency fund backed by renowned investors, has initiated a controlled shutdown. This decision was made after its founder, Gan Lin, remained silent following his departure to China to handle personal matters.
Gan, a former executive at Huobi and recipient of Forbes Asia’s 30 Under 30, initially raised $50 million for his venture fund, OP Crypto, in 2021. The fund grew, and by early 2024, it managed nearly $100 million in assets. However, Gan’s unexplained disappearance left investors in a predicament, forcing them to take action.
Founder’s absence sparks concerns
Gan’s sudden disappearance caused panic among the limited partners of the fund. In May, he informed investors that he would travel to China due to an investigation involving his father, a retired senior Chinese government official. Since sending that email, Gan has been out of contact for over a month. As a result, limited partners voted to initiate a controlled liquidation of the company during his absence. Upon returning to the country, Gan agreed to step down from his primary responsibilities at Inception Capital.
Uncertain future for Inception Capital
With Gan’s departure, the future of Inception Capital remains uncertain. The company has paused investments and laid off half of its staff, currently going through a turbulent period. Despite these challenges, Inception has hired a new trading analyst.
Additionally, the company plans to propose a formal resolution in October, allowing investors to use the remaining 25% of unallocated capital. However, the uncertainty surrounding the recent troubles of the company has made investors cautious about the future.
Unrelated to cryptocurrency crime
While Gan’s father is under investigation, there is no evidence to suggest that this case is related to Inception Capital or the cryptocurrency industry. Moreover, the complex relationship between China and the United States has also impacted the blockchain industry. However, Gan’s initial focus was on bridging the gap between the Western and Asian cryptocurrency markets. Investors are now weighing the risks involved to decide whether to continue investing in the fund or minimize their losses.
