Hedge fund Galois Capital announces that half of its funds are stuck with FTX
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Answer Hedge fund Galois Capital announces that half of its funds are stuck with FTX
Galois Capital, a cryptocurrency hedge fund that deals in over-the-counter trading, has announced that nearly half of its capital is locked up in FTX.
According to a news report to ReutersGalois co-founder Kevin Chu stated that the trapped fund is estimated to be around $100 million despite the company initially withdrawing some funds from cryptocurrency exchange FTX.
Chu wrote to investors that he was very sorry about the situation because they did not expect the 3AC scenario to be replayed with FTX.
He added that it may take a few years for the fund to recover from its current plight.
Read:Crypto project uses investors’ money to buy Israeli football club
“Galois Capital” tweeted via the company’s official page that the funds were not withdrawn using any process from the Bahamas as there is still a large amount outstanding while responding to accusations that they illegally transferred funds from FTX using Bahamas accounts.
They’ve also hinted that the Galois don’t have any debts, so only their assets are affected.
Zhou explains:
The fund is currently debating whether to continue to operate normally, pursue an acquisition, or become a proprietary trading company.
The news comes after Galois initially offered suggestions on how FTX might be able to weather its financial crisis.
Galois tweeted that FTX could apply proportional debt reduction to all accounts, offer a Bitfinex-style debt-claiming token for an amount, and reduce headcount while still running FTX.
FTX breakdown effect:
Galois Capital isn’t the only cryptocurrency firm in disarray as a result of the fallout from the FTX trading platform.
BlockFi recently suspended user withdrawals after the ensuing financial crisis with FTX.
BlockFi, which was valued at $3 million, announced earlier in the week that it would halt withdrawals including deposits due to uncertainty over problems with FTX.
Read:Report: $11 billion in losses for cryptocurrency trading platforms as a result of hacking
Earlier in the year, BlockFi arranged a $680 million deal with FTX.US that included a $400 million credit facility and an option for FTX to buy BlockFi.
But the recent FTX crash has made BlockFi go back to its old problems.
Read also:
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The White House is asking regulators to enforce crypto rules and regulations due to the FTX crisis
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