- The FTX crypto exchange has trapped half of the hedge fund’s monitored assets.
- Zhou advised investors that they might withdraw some money from the exchange.
The demise of the FTX exchange is a big setback for the crypto industry. This fall may continue throughout the foreseeable future, experts say. On the other hand, a prominent Hedge fund has apparently revealed that a significant portion of its money is still trapped on the bankrupt FTX platform.
Amid the ongoing FTX collapse, the Galois Capital reportedly is exposed to the exchange. The FTX crypto exchange has trapped half of the hedge fund’s monitored assets. Coincidentally, the fall of the LUNA cryptocurrency was predicted by the hedge fund’s discovery earlier this month.
Half Available Capital Exposed
According to the report, co-founder of Galois Kevin Zhou advised investors that they might withdraw some money from the exchange. It also said that around half of its available capital is held up on the platform. Experts estimate that the FTX breach puts the hedge funds at risk something in the range of $100 million.
After the severe loss, FTX Exchange apparently declared bankruptcy. Liquidity problems led to a drop in FTX’s value from $32 billion to bankruptcy.
Zhou expressed regret for bringing this predicament to the investors. They are currently making every effort to recoup any lost funds. He also said it might take some time (a few years) to get a return on investment for the assets. There was almost $200 million in assets that Galois were managing.
After failing to arrange a bailout program for the FTX, SBF resigned as CEO on Friday. Earlier, Binance’s CZ made an acquisition bid to SBF. The agreement fell through, though, and the cryptocurrency market promptly crashed. Numerous hedge funds utilized FTX since it was considered to be one of the world’s safest crypto trading platforms.
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