Hedge fund Galois Capital closed half nearly half of its assets that were stuck on collapsed crypto exchange FTX, joining a list of investment firms such as Sequoia Capital exposed to the FTX drama.
Galois co-founder Kevin Zhou told investors that the fund had managed to pull money from the exchange, but it still had roughly half of its capital stuck on FTX.
I am deeply sorry that we find ourselves in this current situation,” Zhou wrote in a report, adding that it could take a few years to recover some percentage of its assets.
Earlier this week, Venture capital firm Sequoia Capital shocked its investors after tweeted out a letter in which revealed the firm had marked its $213.5 million investments in FTX and FTX US down to $0.
Sequoia’s investment into FTX is part of the exchange’s $900 million series B investment round in July 2021.
Sequoia reassured its investors that the writing off of FTX wouldn’t have a serious impact on the fund, saying it accounted for less than 3% of the capital committed to it.
“The $150M loss is offset by ~$7.5B in realized and unrealized gains in the same fund, so the fund remains in good shape.”
Other institutional investors including Singapore’s Temasek, Paradigm, Ontario Teacher’s Pension Plan, are also at risks of losing their money from the crypto’s exchange’s implosion.
FTX has filed U.S. bankruptcy proceedings on Nov 11th (Friday) while its chief executive Sam Bankman-Fried stepped down, triggering one of the biggest collapses in the crypto industry.