Key Takeaways
- • Leadership Departure: Pantera Capital's co-Chief Investment Officer Joey Krug has departed the firm, with his responsibilities absorbed by a newly formed executive management committee led by founder Dan Morehead, Paul Veradittakit, and newly appointed President Jasper Lewitton.
- • Fund Performance Crisis: Pantera's Liquid Token Fund lost 80% of its value during 2022, including a 23% decline in November following the FTX exchange collapse, signaling significant challenges in the crypto VC landscape.
- • Organizational Restructuring: Pantera announced two senior hires to strengthen institutional infrastructure: Katrina Paglia (former Coinbase associate general counsel) as general counsel and chief compliance officer, and Marc Selfon (13-year Apollo Global Management veteran) as chief financial officer beginning in April 2023.
- • Fund Successor Strategy: Management plans to launch a successor to its flagship Blockchain Fund in the second half of 2023, with the original fund preparing to close with $1.3 billion in committed capital.
- • Bench Strength: Pantera emphasized operational continuity, citing 65 experienced investment and operations professionals capable of absorbing leadership transitions without disruption to fund management.
Summary
Pantera Capital, one of the largest crypto-focused venture capital and investment firms, has undertaken significant leadership restructuring following the departure of co-Chief Investment Officer Joey Krug. The reorganization, detailed in a letter to limited partners on Friday, February 3, reflects broader industry challenges following the November 2022 FTX exchange collapse and demonstrates the firm's effort to strengthen governance and operational infrastructure.
Krug, who joined Pantera in 2017 to manage the Liquid Token Fund, revealed during an investor call that the fund experienced severe losses during 2022—an 80% decline for the year, with a particularly acute 23% drawdown in November in the aftermath of FTX's failure. While the letter did not specify reasons for Krug's departure, Pantera founder and CEO Dan Morehead characterized the transition as collaborative, stating: "While Joey is a friend and we are naturally sad to see him leave, we expect the transition to be seamless." Krug's responsibilities will be absorbed by an executive management committee comprising Morehead, longtime partner Paul Veradittakit, and Jasper Lewitton, who joined Pantera as president in summer 2022 after a decade-long tenure at Ray Dalio's Bridgewater Associates.
Simultaneously, Pantera announced two strategic senior hires aimed at strengthening institutional and compliance frameworks. Katrina Paglia, formerly associate general counsel at Coinbase supporting digital asset and exchange products, joins as general counsel and chief compliance officer. Marc Selfon, who spent over 13 years at Apollo Global Management as a managing director in credit and private equity divisions, will assume the chief financial officer role beginning in April 2023. These appointments signal Pantera's prioritization of regulatory compliance and financial governance as the crypto industry faces heightened scrutiny.
Management reiterated near-term strategic objectives, including the planned launch of a successor to its flagship Blockchain Fund in the second half of 2023. The original Blockchain Fund is preparing to close with $1.3 billion in committed capital. Morehead emphasized operational continuity, noting that Pantera maintains a deep bench of 65 experienced investment and operations professionals capable of executing the firm's investment strategy without disruption.
Krug, who joined Pantera in 2017 to manage the Liquid Token Fund, revealed during an investor call that the fund experienced severe losses during 2022—an 80% decline for the year, with a particularly acute 23% drawdown in November in the aftermath of FTX's failure. While the letter did not specify reasons for Krug's departure, Pantera founder and CEO Dan Morehead characterized the transition as collaborative, stating: "While Joey is a friend and we are naturally sad to see him leave, we expect the transition to be seamless." Krug's responsibilities will be absorbed by an executive management committee comprising Morehead, longtime partner Paul Veradittakit, and Jasper Lewitton, who joined Pantera as president in summer 2022 after a decade-long tenure at Ray Dalio's Bridgewater Associates.
Simultaneously, Pantera announced two strategic senior hires aimed at strengthening institutional and compliance frameworks. Katrina Paglia, formerly associate general counsel at Coinbase supporting digital asset and exchange products, joins as general counsel and chief compliance officer. Marc Selfon, who spent over 13 years at Apollo Global Management as a managing director in credit and private equity divisions, will assume the chief financial officer role beginning in April 2023. These appointments signal Pantera's prioritization of regulatory compliance and financial governance as the crypto industry faces heightened scrutiny.
Management reiterated near-term strategic objectives, including the planned launch of a successor to its flagship Blockchain Fund in the second half of 2023. The original Blockchain Fund is preparing to close with $1.3 billion in committed capital. Morehead emphasized operational continuity, noting that Pantera maintains a deep bench of 65 experienced investment and operations professionals capable of executing the firm's investment strategy without disruption.
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