Lantern Ventures, founded by former members of Alameda Research managing up to $600 million, is closing its doors and returning funds to its investors after seven years of operation.
An Old Pillar of Institutional Crypto Finance
At its peak, Lantern Ventures managed over $600 million in assets. Founded by Tara Mac Aulay, former co-founder of Alameda Research, the fund established itself as one of the most respected institutional players in crypto trading. Its discreet yet effective strategy made it a key player for global exchanges and arbitrage funds.
Today, according to sources close to the matter, the firm is preparing for an orderly liquidation. Some team members are expected to lose their jobs, while the management is exploring two options: either selling the fund to a third party or transforming it into a family office, a structure dedicated to managing private wealth.
Ambitions Dampened by a Bearish Market
Lantern long embodied the “new wave” of crypto finance: professionals from philanthropy and tech aiming to reconcile performance and positive impact. The company even donated 50% of founders’ profits to charitable causes.
However, the October 10 crisis, which severely shook crypto markets, deterred institutional investors. Capital became scarce, fundraisings became challenging, and performance became more unpredictable. In this scenario, Lantern could not escape the reality: trust evaporated.
The Alameda Legacy, Between Shadow and Light
Tara Mac Aulay, one of the first to leave Sam Bankman-Fried before the collapse of Alameda and FTX, took it upon herself to rebuild a clean reputation. Before delving into trading, she led the Center for Effective Altruism, a philanthropic project she shared with SBF.
Ironically, a Lantern subsidiary, Pharos USD Fund SP, was mentioned as the principal creditor of Celsius during the lender’s bankruptcy in 2022, for around $80 million. An exposure that highlights how interconnectedness in crypto can turn explosive.
End of a Cycle, Beginning of a More Mature Era
The closure of Lantern Ventures marks a turning point: the end of the era of unrestrained hedge funds born during the 2017 boom. The surviving institutions today aim to be more cautious, regulated, and focused on transparency.
Lantern disappears into the storm, but leaves a clear lesson: crypto finance can no longer rely on audacity alone, it must now prove its resilience.
