The recent news that Matt Beasley's private equity fund Baycap.io was a Ponzi-like scheme has shaken the financial world. Beasley had been managing the private equity fund with the purpose of allowing the Lookouts to buy Woods' share of the club for $1.87 million. It was revealed, however, that Beasley never used investor funds to trade but instead used the money to make Ponzi-like payments and purchased Rolex watches.
This news was particularly shocking as Beasley had previously been held in high regard. In October, he had appeared on a Metropolitan Republican Club interviewer and boasted that his firm was one of the top 500 private-equity firms globally. He had also been involved in the Bored Ape Yacht Club NFT which had been a hot topic of conversation.
It is likely that Beasley was inspired by the short-selling stock-market investor. These investor look for troubled companies in order to make a profit, with one example being the J and J investment firm and its suspected Ponzi scheme. Unfortunately, it appears that Beasley was not motivated by the same pursuit of profit and instead used the money for his own personal gain.