{"id":14458,"date":"2022-11-12T19:48:33","date_gmt":"2022-11-12T19:48:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/hedge-fund-galois-capital-discloses-roughly-half-of-the-firms-capital-stuck-on-ftx-bitcoin-news\/"},"modified":"2022-11-12T19:48:33","modified_gmt":"2022-11-12T19:48:33","slug":"hedge-fund-galois-capital-discloses-roughly-half-of-the-firms-capital-stuck-on-ftx-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/hedge-fund-galois-capital-discloses-roughly-half-of-the-firms-capital-stuck-on-ftx-bitcoin-news\/","title":{"rendered":"Hedge Fund Galois Capital Discloses ‘Roughly Half’ of the Firm’s Capital ‘Stuck on FTX’ \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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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\u2019s capital is left trapped on FTX. Galois co-founder, Kevin Zhou, wrote a letter to investors explaining the situation and said he was \u201cdeeply sorry\u201d about the turn of events.<\/strong><\/p>\n

Galois Capital Tells Clients Half of the Company\u2019s Capital Got Stuck on FTX, Recovering Assets Could Take Years, Co-Founder Says<\/h2>\n

On Nov. 11, 2022, the Financial Times (FT) reported<\/a> 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\u2019s capital is \u201cstuck on FTX.\u201d FT reports that Galois\u2019 assets under management (AUM) in June indicate it could be a loss of around $100 million.<\/p>\n

\u200b\u200b\u201cI am deeply sorry that we find ourselves in this current situation,\u201d Zhou said in the letter to Galois clients. \u201cWe will work tirelessly to maximise our chances of recovering stuck capital by any means,\u201d the Galois co-founder added. Zhou further stated that Galois had \u201ca ton of open positions\u201d that it was forced to close because of \u201cunderappreciating the solvency risk with holding our funds at FTX.\u201d<\/p>\n

The Galois Capital hedge fund manager was once a Kraken employee before Galois was created. Zhou is also well known for calling out Terra\u2019s red flags<\/a> 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\u2019s bankruptcy proceedings.<\/p>\n

\u201cI expect we will recover some percentage of our assets on FTX over the course of a few years,\u201d the Galois Capital co-founder added. According to reports<\/a>, FTX\u2019s wallets were allegedly hacked and the crypto exchange\u2019s funds, according to onchain data, have been depleted to zero.<\/p>\n

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\nTags in this story
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crypto hedge fund<\/a>, FTX Bankruptcy<\/a>, FTX Bankruptcy case<\/a>, FTX collapse<\/a>, FTX Exchange<\/a>, FTX insolvency<\/a>, FTX wallets hacked<\/a>, Galois Capital<\/a>, Galois co-founder<\/a>, hedge fund<\/a>, Insolvency<\/a>, Kevin Zhou<\/a>, Kevin Zhou FTX<\/a>, Letter to clients<\/a>, Terra collapse<\/a><\/div>\n<\/div>\n

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.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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