Hedge fund Galois Capital says half of its capital is locked up on FTX-FT exchange

Nov 12 (Reuters) – Galois Capital is the latest hedge fund caught off guard after nearly half of its assets were trapped on collapsed crypto exchange FTX, the Financial Times said on Saturday, estimating the amount at around 100 million of dollars.

Galois co-founder Kevin Zhou wrote to investors in recent days that while the fund was able to withdraw money from the exchange, it still had “about half of our capital tied up in FTX,” said the newspaper, quoting from a letter he had blessed.

“I am deeply sorry that we find ourselves in this current situation,” Zhou wrote according to the report, adding that it could take “a few years” to recover “a certain percentage” of his assets.

FTX filed for bankruptcy proceedings in the United States on Friday and its CEO, Sam Bankman-Fried, resigned after a rapid liquidity crisis within the group, leaving FTX scrambling to raise around $ 9.4 billion from investors and rivals.

FTX’s rapid fall followed heavy speculation about its financial health that sparked $6 billion in withdrawals in just 72 hours earlier this week. The company had posted a valuation of $32 billion as recently as January.

FTX and Galois did not immediately respond to requests for comment from Reuters.

Reporting by Akriti Sharma in Bengaluru; Editing by Clarence Fernandez and Stephen Coates

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