In a discussion between CoinDesk and the Galois Capital co-founder, Kevin Zho, it was explained that a total of an estimated $40 million in funds are locked up in FTX at this time.
The crypto hedge fund Galois Capital had earlier this year gained some renown for predicting the Terra crash — whose stablecoin ecosystem $60 billion collapse became the catalyst for the current bear market.
At the mercy of the bankruptcy process, Galois – and all other investors in FTX – may have to wait a while before being able to access their funds.
For the record, yes we did have significant funds stuck on FTX. No, we did not use any Bahamian method to move funds out.
— Galois Capital (@Galois_Capital) November 11, 2022
Galois Capital had admitted on the record that they did in fact have “significant funds stuck on FTX” but that they had not employed “any Bahamian method to move funds out.”
Zhou addressed Galois investors in a letter stating that it may that “a few years” before recovery of funds could begin.
We will work tirelessly to maximize our chances of recovering stuck capital by any means.
Due to FTX not backing held user funds on a 1:1 basis, the FTX cannot facilitate any withdrawal requests without rescue capital bailout.
Zhou concluded by explaining that Galois is now contemplating whether to continue normal operations, become a propriety trading shop, or pursue acquisition.