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© Reuters. FILE PHOTO: Representations of cryptocurrencies are seen in entrance of displayed FTX brand on this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) – Galois Capital is the newest hedge fund caught off guard after near half its belongings had been trapped on collapsed crypto alternate FTX, the Monetary Occasions mentioned on Saturday, estimating the quantity to be round $100 million.
Galois co-founder Kevin Zhou wrote to buyers in latest days that whereas the fund had been in a position to pull some cash from the alternate, it nonetheless had “roughly half of our capital caught on FTX,” the paper mentioned, quoting a letter it had seen.
“I’m deeply sorry that we discover ourselves on this present scenario,” Zhou wrote as per the report, including that it may take “just a few years” to recuperate “some share” of its belongings.
FTX filed U.S. chapter proceedings on Friday and its Chief Govt Officer Sam Bankman-Fried resigned after a fast liquidity crunch on the group left FTX scrambling to lift about $9.4 billion from buyers and rivals.
FTX’s swift fall from grace adopted heavy hypothesis about its monetary well being that triggered $6 billion of withdrawals in simply 72 hours earlier this week. The corporate had revealed a valuation of $32 billion as just lately as January.
FTX and Galois didn’t instantly reply to Reuters requests for remark.
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