Bloomberg Law
July 7, 2022, 4:39 PM

Crypto Firm Polychain Must Pay Investor $5 Million, Court Says

Clara Hudson
Clara Hudson
Corporate Governance Reporter

The Delaware Chancery Court approved an arbitrator’s decision that crypto hedge fund Polychain Capital LP’s founder and others tried to undermine a hedge fund investor and usurp its financial opportunities.

The arbitrator awarded the investor, crypto hedge fund Pantera, about $5.5 million and decided that Polychain’s founder breached fiduciary duty by “diverting corporate opportunities.” The Delaware court on Wednesday denied the San Francisco-based Polychain’s bid to vacate the award.

Pantera argued in the arbitration proceeding that Polychain’s founder, Olaf Carlson-Wee, diverted business opportunities at Polychain Capital to Polychain VC, a new investment manager he created to advise venture funds investing ...

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