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Crypto Fund Galois Capital Has Half of Its Capital Trapped on FTX

Sam is a press reporter at CoinDesk concentrated on decentralized innovation, DeFi and DAOs. He owns ETH, BTC and MATIC.

Crypto hedge fund Galois Capital informed CoinDesk in a Telegram message on Saturday that around half of its funds are stuck on FTX, the beleaguered crypto exchange which applied for chapter 11 insolvency defense on Friday

The funds secured FTX amount to around $40 million, Galois co-founder Kevin Zhou stated.

Galois made honor previously this year for forecasting the crash of Terra, the stablecoin environment whose $60 billion collapse was among the essential factors behind crypto’s plunge into its present bearishness.

Depending on how the personal bankruptcy procedures development, it might take a while for Galois– or any FTX financiers– to recover any of their funds.

In a letter to Galois financiers, Zhou composed that it might take “a couple of years” for the company to recuperate “some portion” of its funds. “We will work relentlessly to optimize our possibilities of recuperating stuck capital by any ways,” he informed financiers.

FTX was, up until just recently, the second-largest cryptocurrency exchange by volume, and handled to make a high degree of trust from advanced financiers and institutional customers relative to other platforms.

Things began to go sour for FTX when dripped files revealed by CoinDesk revealed that the company’s sis business, Alameda Research, was collateralizing loans with illiquid tokens– consisting of FTX’s own FTT token.

Eventually, a bank run took place, exposing that FTX was not backing user funds 1:1 behind the scenes– indicating the company might not honor withdrawal demands without billions in rescue capital.

Now, according to Zhou, Galois is thinking about whether it must continue running as regular, pursue an acquisition or end up being an exclusive trading store.


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Sam is a press reporter at CoinDesk concentrated on decentralized innovation, DeFi and DAOs. He owns ETH, BTC and MATIC.

Sam is a press reporter at CoinDesk concentrated on decentralized innovation, DeFi and DAOs. He owns ETH, BTC and MATIC.

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Crypto Fund Galois Capital Has Half of Its Capital Trapped on FTX

Crypto Fund Galois Capital Has Half of Its Capital Trapped on FTX

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