Galois Capital, a crypto hedge fund, has told its investors that roughly half of its capital is stuck with FTX, which said on Friday that it has filed for bankruptcy protection. As per recent reports, around $100 million of Galois Capital is estimated to be trapped with FTX.
Galois co-founder Kevin Zhou expressed “deep sorry” in his letter to investors about the turn of events. He said Galois was able to pull out some of its funds but still nearly half of its capital is stuck on the failed platform. It may take a few years to recover some percentage of the assets, Zhou said.
The FTX statement on Friday also revealed that Chief Executive Officer Sam Bankman-Fried has resigned.
According to the latest financial details, FTX had less than $1 billion of liquid assets in contrast to $9 billion in liabilities a day before FTX collapsed.
The first to notice the impending trouble was Binance CEO Changpeng Zhao who publicly announced the liquidation of all of FTT holdings last weekend. Soon Binance off-loaded 23 million FTT tokens worth $583 million. The event saw the FTT price take a sharp 10% plunge within 24 hours.
This triggered a mass withdrawal which saw $6 billion worth of FTT liquidated within the next 72 hours.
In January 2022, FTX’s market cap stood at $32 billion and it was the second-largest crypto trading platform by volume.
