Forbes: Bhutan's sovereign wealth fund Druk invested tens of millions of dollars in cryptocurrency in 2022

ChainCatcher news, according to Forbes, court documents show that over the past year, the Royal Government of Bhutan's sovereign wealth fund Druk Holdings & Investments has invested tens of millions of dollars in Bitcoin, Ethereum, and other digital assets, and that the fund is a client of the bankrupt cryptocurrency lenders BlockFi and Celsius, but it has never publicly disclosed these two points. It is reported that the fund holds $2.9 billion in assets.

Last month, BlockFi's lawyers filed a lawsuit against Druk in Thimphu, the capital of Bhutan, accusing Druk of defaulting on a $30 million loan. Druk's CEO Ujjwal Deep Dahal stated, "The issues with BlockFi have been resolved. We cannot comment due to confidentiality reasons." Additionally, court documents from Celsius show that within three months, Druk withdrew over $65 million and deposited nearly $18 million in digital assets. Druk declined to comment on the source and use of these funds.

It has been reported that at least since 2022, Druk has also established a secret cryptocurrency portfolio. It remains unclear whether Druk's holdings are related to Bhutan's recent modernization plans. Reports suggest that Druk's tens of millions of dollars investment in cryptocurrency would be a strange move for a holding company aimed at promoting domestic venture capital. If it is indeed a sovereign wealth fund, it appears to be the first fund to directly hold cryptocurrency. Duncan Bonfield, CEO of the International Forum of Sovereign Wealth Funds, denied this claim, stating, "We have not seen any real interest in cryptocurrency as an asset class, and we do not believe any of our members have allocated cryptocurrency in their portfolios." (source link)