- Ant Group is withdrawing a $100 million investment in A&T Capital’s blockchain fund due to an investigation into the fund’s founders.
- A&T Capital’s future remains uncertain as crypto venture capital funding falls in favor of AI, reflecting Ant Group’s shifting ambitions.
- Ant Group’s interest in blockchain may decline because of the dominance of renminbi-based fintech services and China’s concentration on digital currency.
In a recent development, Ant Group, a Chinese financial technology company, apparently opted to sell its $100 million investment in A&T Capital, signifying a withdrawal from the risky cryptocurrency market.
Ant Group to Leave A&T Capital
A&T Capital was founded in 2021 and has since become a prominent player in the cryptocurrency market, investing in companies such as digital asset lender Matrixport and Ethereum software company ConsenSys.
Ant Group, founded by Alibaba owner and Chinese magnate Jack Ma, is reportedly withdrawing from the $100 million fund at a time when the crypto venture capital market is facing a steep decline. According to data, crypto startup funding fell to its lowest level since 2020 in the second quarter.
These recent reports cast doubt on A&T Capital’s future, as it is unclear whether it will require a new investor or be able to continue operations. According to rumors, A&T Capital’s website has a timed-out issue as of September 18, adding to the confusion.
The Ant Group move comes just six months after Yu Jun resigned from A&T Capital. Yu Jun was a key figure in establishing A&T, even significantly contributing to the network’s efforts to grow offshore. The crypto KOL and former OKX executive resigned from A&T Capital after sexual assault charges were made against him.
According to sources, both government watchdogs and A&T Capital’s team have been investigating the ex-executive for alleged sexual misconduct, primarily at A&T Capital, since 2022.
Ant’s Latest Developments: The AI Race
The emerging reports are just the latest in Ant Group’s recent developments, as the company wants to make significant advancements in financial AI while appearing to take a step back in crypto.
On September 8, Chinese financial behemoth Ant Group launched a finance-specific AI model and began testing for consumer and professional applications.
This was Ant Group’s entry into the competitive AI realm, with over 130 other Chinese companies launching comparable ideas.
According to reports, cryptocurrency investment has suddenly dried up despite venture capitalists continuing to flock to artificial intelligence since 2020. As a result, AI investment has significantly grown over the same period.