This Hedge Fund Might Collapse Over FTX Hack

FTX Hack News: The FTX cryptocurrency exchange’s collapse has marked a major dent in the global digital asset market. It is expected that this decline might continue ahead. However, a major Hedge fund has reportedly confirmed that a huge amount of its capital is still stuck on the FTX exchange amid the hack.

Another Collapse Amid FTX Hack?

As per reports, the Galois Capital has been caught off guard amid the running FTX collapse. Half of the assets monitored by the hedge fund have been trapped on the FTX crypto exchange. Ironically, the hedge Fund’s found spotted the collapse of LUNA cryptocurrency earlier this month.

The report mentions that Kevin Zhou, Galois co founder informed its investors that they were being able to pull some money out of the exchange. It added that around half of its capital is stuck on the exchange. It is expected that around $100 million worth of assets is at risk amid the FTX hack.

Coingape reported that FTX Exchange filed for Bankruptcy after the massive collapse. FTX valuation went from $32 billion to bankruptcy over liquidity issue.

Zhou apologized for landing the investors in this situation. However, they are still working tirelessly to maximize their chance of recovering stuck capital. He added that it might take a few years to recover some percentage of the assets. The Galois were managing more than $200 million worth of assets.

SBF’s Failed Rescue Attempts

SBF on Friday resigned as Chief executive of the FTX after failed efforts to secure a rescue package. Earlier, CZ offered an acquisition deal to the SBF. However, the deal didn’t go through which led to the major sell off in the crypto market.

The report suggests that FTX was used by several hedge funds as it was seen as one of the world’s safer crypto trading platforms.