Hedge Fund Galois Capital Discloses ‘Roughly Half’ of the Firm’s Capital ‘Stuck on FTX’

According to the co-founder of Galois Capital, the hedge fund manager who warned about the Terra collapse before it happened, half of the hedge fund’s capital is left trapped on FTX. Galois co-founder, Kevin Zhou, wrote a letter to investors explaining the situation and said he was “deeply sorry” about the turn of events.

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Galois Capital Tells Clients Half of the Company’s Capital Got Stuck on FTX, Recovering Assets Could Take Years, Co-Founder Says

novembril. 11, 2022, the Financial Times (FT) teatatud on a letter sent to investors stemming from the crypto hedge fund Galois Capital. According to the letter, Galois co-founder Kevin Zhou explained that roughly half of the company’s capital is “stuck on FTX.” FT reports that Galois’ assets under management (AUM) in June indicate it could be a loss of around $100 miljonit.

​​“I am deeply sorry that we find ourselves in this current situation,” Zhou said in the letter to Galois clients. “We will work tirelessly to maximise our chances of recovering stuck capital by any means,” the Galois co-founder added. Zhou further stated that Galois had “a ton of open positions” that it was forced to close because of “underappreciating the solvency risk with holding our funds at FTX.”

The Galois Capital hedge fund manager was once a Kraken employee before Galois was created. Zhou is also well known for calling out Terra’s red flags well before it collapsed, and he further had an online tiff with Terra founder Do Kwon. According to the letter, Zhou told Galois Capital clients that the team would become a creditor in FTX’s bankruptcy proceedings.

“I expect we will recover some percentage of our assets on FTX over the course of a few years,” the Galois Capital co-founder added. Vastavalt aruanded, FTX’s wallets were allegedly hacked and the crypto exchange’s funds, according to onchain data, have been depleted to zero.

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What do you think about Galois Capital losing half of its capital due to the funds getting stuck on the now-defunct FTX exchange? Let us know what you think about the subject in the comments section below.

Jamie Redman

Jamie Redman on Bitcoin-Tidings.com Newsi uudistejuht ja Floridas elav finantstehnoloogia ajakirjanik.. Redman on sellest ajast alates olnud aktiivne krüptoraha kogukonna liige 2011. Tal on kirg Bitcoini vastu, avatud lähtekoodiga kood, ja detsentraliseeritud rakendused. Alates septembrist 2015, Redman on kirjutanud rohkem kui 6,000 artiklid saidile Bitcoin-Tidings.com Uudised täna esile kerkivate häirivate protokollide kohta.




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