Nov 12 (Reuters) – Galois Capital is the latest hedge fund to be caught off guard after nearly half of its assets were caught on collapsed crypto exchange FTX, the Financial Times said on Saturday, putting the amount at around $100 million.
Galois co-founder Kevin Zhou wrote to investors in recent days that even if the fund had been able to withdraw some money from the exchange, it still had “about half of our capital stuck in FTX,”[ads1]; the paper said, citing a letter it had . set.
“I am deeply sorry that we find ourselves in this current situation,” Zhou wrote, according to the report, adding that it may take “a few years” to recover “some percentage” of the assets.
FTX filed for US bankruptcy on Friday, with CEO Sam Bankman-Fried stepping down after a rapid liquidity crisis at the group left FTX scrambling to raise about $9.4 billion from investors and rivals.
FTX’s rapid fall from grace followed heavy speculation about its financial health that sparked $6 billion in withdrawals in just 72 hours earlier this week. The company had published a valuation of $32 billion as recently as January.
FTX and Galois did not immediately respond to Reuters requests for comment.
Reporting by Akriti Sharma in Bengaluru; Editing by Clarence Fernandez and Stephen Coates
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