Hedge fund Galois Capital says half its capital caught on FTX trade -FT

Galois Capital is the newest hedge fund caught off guard after near half its belongings have been trapped on collapsed crypto trade FTX, the Monetary Instances stated on Saturday, estimating the quantity to be round $100 million.

Galois co-founder Kevin Zhou wrote to traders in latest days that whereas the fund had been in a position to pull some cash from the trade, it nonetheless had “roughly half of our capital caught on FTX,” the paper stated, quoting a letter it had seen.

“I’m deeply sorry that we discover ourselves on this present scenario,” Zhou wrote as per the report, including that it may take “just a few years” to get well “some proportion” of its belongings.

FTX filed U.S. chapter proceedings on Friday and its Chief Govt Officer Sam Bankman-Fried resigned after a speedy liquidity crunch on the group left FTX scrambling to lift about $9.4 billion from traders and rivals.

FTX’s swift fall from grace adopted heavy hypothesis about its monetary well being that triggered $6 billion of withdrawals in simply 72 hours earlier this week. The corporate had revealed a valuation of $32 billion as lately as January.

FTX and Galois didn’t instantly reply to Reuters requests for remark.