Deus X Capital to Shut Down as Morton Family Splits Strategies

Deus X Capital, the crypto and fintech investment firm that launched with $1 billion in deployable capital, has ceased operations as its backers pursue separate investment strategies, the company told CoinDesk.

The firm, led by former Galaxy Digital (GLXY) executive Tim Grant, will formally unwind on Jan. 31, 2027. Chief Investment Officer Stuart Connolly will remain to oversee the transition. Some portfolio businesses will continue operating with the involvement of existing stakeholders, the company said.

Why is Deus X shutting down?

The Morton family investors behind Deus X are splitting their investment activities into two new vehicles.

• Shane Morton is establishing Darius, an investment firm focused on artificial intelligence.
• Owen and Jason Morton are setting up 95, focused on markets and fintech.

Grant, who led Galaxy Digital's Europe, Middle East and Africa business before joining Deus X, will become CEO of TensorX, an AI venture within Darius owned by Shane Morton, one of Deus X's founders and backers.

"We want to be a prominent player in AI in Europe," Grant told CoinDesk in an interview.

What does the split say about crypto versus AI?

The move reflects a broader shift in where investor attention and capital are flowing. Crypto is facing growing competition from AI.

Galaxy Research said in September that interest in artificial intelligence was diverting attention from digital assets, adding to venture firms' fundraising challenges. Deus X's leadership is now following that capital.

How did Deus X perform?

Deus X said it had generated annual returns of 36.5% since inception, but declined to disclose its total capital.

The family office-backed firm debuted in October 2023 with $1 billion in existing investments and capital available for deployment. Its strategy spanned:

• Private equity
• Venture capital
• Hedge fund allocations

Those allocations covered digital assets, blockchain, fintech and institutional capital markets.

The firm maintained a presence in Malta, London and the United Arab Emirates.

What was in the portfolio?

Its initial investments included stakes in Galaxy Digital and asset manager Hilbert Group, alongside allocations to several hedge funds.

In September 2024, Deus X launched Solstice Labs to develop institutional-grade decentralized finance products accessible to a broader range of investors.

According to CoinDesk, the portfolio also included proprietary trading firm Alpha Lab 40 and crypto prime broker Cor Prime. Cor Prime launched with a $100 million risk-capital commitment from Deus X.

What happens next?

The unwinding process runs through Jan. 31, 2027, with Connolly managing the transition and existing stakeholders keeping selected portfolio businesses alive. Grant's move to TensorX signals where at least part of the Morton family's capital is heading next — toward European AI rather than digital assets.