FalconX, one of the leading crypto prime brokers, acquired a majority stake in the Monarq hedge fund. The acquisition goes through the parent company of the multistrategy crypto hedge fund Monarq Asset Management.
FalconX has expanded its services after acquiring a stake in the parent company of Monarq Asset Management. The Monarq fund is a multi-strategy crypto investor, helping FalconX expand into the asset management business.
The acquisition will be a new stage for Monarq, which went through two rounds of restructuring and rebranding. Monarq Asset Management was formerly known as MNNC Group, registered in the Cayman Islands. Before that, the fund was known as Ledger Prime, part of the FTX exchange’s wealth management empire.
Ledger Prime was connected to the activities of Alameda Research, the crypto trading firm that was entangled with the FTX exchange. Later, Ledger Prime relaunched under the new identity of MNNC, before once again rebranding as Monarq under the management of Shiliang Tang.
FalconX aims to reach out to a wider circle of clients
Previously, FalconX has stated its intentions to acquire suitable companies, tapping its record revenues from the growing crypto market. Recently, FalconX also partnered with Standard Chartered to offer services to institutional clients. In January, FalconX also acquired the derivative exchange Arbelos Markets.
The terms of the deal were not disclosed, as FalconX is a privately held company. The acquisition aims to expand the prime broker’s user base beyond hedge funds, trading funds, and asset managers, according to the head of revenue and business at FalconX, Austin Reid.
Reid also mentioned the new clients of FalconX may include endowments, pensions, family offices, or anyone looking for asset management solutions within crypto. He added that the company would seek more acquisitions in the next year or two, going with the wave of consolidations in the crypto space.
The Monarq Asset Management spun off as a new fund, entirely independent of its history with FTX and Alameda Research. In early 2024, the fund also raised up to $100M for renewed investments. Old LedgerPrime wallets remained active until two months ago, with vestigial assets from previous trading.
As of 2025, Monarq had a team of 16 employees, with crypto strategies deployed to both centralized markets and DEX. The fund has several hundred million dollars in assets under management, based on the founder’s estimates. Monarq applies quantitative, delta-neutral, and directional trading strategies.
The acquisition is one of the final elements in repairing the legacy of defunct exchange FTX. The fund now operates on a new market, with wider adoption and higher institutional involvement.
FalconX itself carries over $174M in its known wallets. The broker was instrumental in moving some of the assets of FTX to exchanges during the bankruptcy lawsuits. The broker has also handled the assets of Celsius Network.
FalconX itself has admitted to having up to 18% of its assets locked within the wallets of FTX. Despite the partial recovery, the broker retained sufficient liquidity, in addition to raising $150M at $8B valuation. The recent deal underscores the decision to forget the FTX fallout and attempt renewed investments in the expanded crypto market.
Read the full article here
