According to a report in the Financial Times, cryptocurrency Hedge fund Galois Capital has told investors that almost half of its funds are stuck in bankrupt crypto exchange FTX.
“We Could Withdraw Half Of The Funds From FTX But Half Remain Locked”
According to the FT’s report, Kevin Zhou, co-founder of Galois, recently wrote in a letter to investors that he was able to withdraw some money from the stock market, but about half of the funds are still stuck.
“We will work tirelessly to maximize our chances of recovering stuck capital by any means,” Zhou wrote, adding that if the exchange files for bankruptcy protection, the firm will become a creditor. FTX filed for Chapter 11 bankruptcy protection on Friday.
Galois, one of the largest crypto quant hedge funds, tweeted last night that “significant funds” were stuck in the stock market and had yet to meet with “any Bahamian officials to move the funds out.”
For the record, yes we did have significant funds stuck on FTX. No, we did not use any Bahamian method to move funds out.
— Galois Capital (@Galois_Capital) November 11, 2022
The following statements were used in the statement made by the company:
“Sorry guys. Seriously, I didn’t expect this to happen. I didn’t anticipate the 3AC status either. Lessons have been removed. I will try to do better.”
As of last summer, Galois was managing more than $200 million worth of assets, according to the FT report.
Depending on how the bankruptcy proceedings are progressing, it may take some time for Galois or any FTX investor to get any of their funds back.
In a letter to Galois investors, Zhou wrote that it may take “several years” for the firm to recover “a certain percentage” of its funds.
*Not investment advice.
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