The liquidity crisis in FTX has seriously injured the cryptocurrency market. The claim that the cryptocurrency exchange “FTX was hacked” and more brought questions. This decline is expected to continue for a while. However, a large hedge fund confirmed that the majority of its capital was in FTX at the time of the hack.
How will the hacking allegations that follow the FTX bankruptcy turn out?
According to reports, Galois Capital was caught off guard during the ongoing FTX crash. Half of the assets tracked by the hedge fund remained on the bankrupt crypto exchange. However, the hedge Fund shared its findings about the collapses in LUNA earlier this month. In the report, Kevin Zhou, the co-founder of Galois, shares that they can withdraw some money from the stock market to their investors. In addition, Zhou added that almost half of his capital is stuck in the stock market. Around $100 million in assets are thought to be at risk during the crisis in FTX.
As we have reported as Kriptokoin.com; FTX reported that it filed for Bankruptcy following the liquidity crisis. According to the valuation of the cryptocurrency exchange, it went bankrupt due to the liquidity problem of $ 32 billion. With all this, Galois co-founder Zhou apologized for putting investors in this situation. However, he said they are working to maximize their chances of recovering the remaining capital.
SBF’s attempts failed
Of course, it is also stated that it may take several years to recover some of the assets. Galois managed more than $200 million in cryptocurrencies.
SBF, the former CEO of bankrupt FTX, resigned as CEO on Friday after efforts to secure a bailout failed. CZ offered SBF a purchase agreement. However, the deal did not materialize and was canceled after Binance’s reviews. This resulted in massive selling pressure in the crypto markets. The report shows that FTX is used by several hedge funds as it is seen as one of the safer crypto trading platforms in the world.
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