Crypto hedge fund Galois capital has told its investors that almost half of its funds are stuck on the failed crypto exchange FTX, according to a report in the Financial Times.
Kevin Zhou, co-founder of Galois, wrote to investors in recent days, saying that it had been able to pull some money from the exchange, but that about half of the funds were still stuck, the FT report said.
“We will work tirelessly to maximise our chances of recovering stuck capital by any means,” wrote Zhou, adding that if the exchange did file for bankruptcy protection, the firm would become a creditor. FTX filed for Chapter 11 bankruptcy protection on Friday.
Galois, one of the biggest crypto quant hedge funds, had tweeted last night that “significant funds” were stuck on the exchange and it had not used “any Bahamian method to move funds out.”
“I’m sorry guys. Seriously, I didn’t see this coming. Didn’t see the 3AC situation either. Lessons learned. Will try to do better,” the company said.
As of this past summer, Galois was managing more than $200 million worth of assets, the FT report said.
The Block contacted Galois for comment but did not immediately hear back.
Read more: FTX collapse timeline: Six days that rocked the crypto industry
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