If the primary investors for the hedge fund themselves need to launder a shit load of cash, it would be a clever approach (of course with much more subtlety than 50%). Hedge funds have a lot more freedom and can be much more secretive than other financial instruments. If there are no stories out yet about people having trouble withdrawing funds, you have to wonder. Also, we might have already heard that Koenig is promising new investors the moon in a mad dash to bring in new cash. Either way, I'd wager there will be federal wire taps in his office soon (if they're not already in place).