Investment fund that won short LUNA was stuck at 40 million USD on FTX

Galois Capital, the hedge fund that successfully shorted LUNA, ran into trouble after half of its assets were stuck on the FTX exchange.

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Investment fund that won short LUNA was stuck at 100 million USD on FTX


Confirming with  CoinDesk , Kevin Zhou said that the amount of money stuck on FTX is around $40 million, different from the $100 million  estimated by the Financial Times .


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Galois Capital won the LUNA bet, but lost to FTX

According to the Financial Times , Galois Capital co-founder Kevin Zhou has just announced in a letter to investors that despite the successful withdrawal of some assets, "about half of the fund's assets are still stuck. again on FTX”. Based on Galois's statistics for June, the amount of money trapped could be as high as $100 million .

“I am deeply sorry for such a dire situation. We will work hard to increase the chances of getting the money back. A large amount of assets are stuck on the floor due to our still open positions and due to weaknesses in the risk assessment of FTX's solvency."


The fund manager also shared that it may take "a few years" to recover "a few percent of the above".

Yesterday (November 11), FTX said that Sam Bankman-Fried had officially resigned as CEO, and the exchange had filed for bankruptcy.

Galois is one of the largest quant funds in the cryptocurrency market. In the summer of 2022, the fund manages more than $200 million in assets. Part of the fund's business is trading as a market maker. Co-founder Kevin Zhou, who used to work for Kraken exchange, is famous for his statements against LUNA and co-UST.


Earlier, in an episode of BlockCrunch's podcast, Mr. Zhou shared the argument, as well as the background to make the decision to short LUNA-UST in May 2022.

Galois Capital has not yet commented on this information.

Algod Trading is also "stumbling"

One of the other names that have been successful in "beating against the waves" with Luna is Algod, who has also been "disturbed" in recent days because of holding FTX money.

Despite causing a lot of controversy about the legitimacy of the "KYC verification" method (specifically, this person is said to have spent $ 100,000 to buy fake Bahamian KYC on FTX), but Algod has also succeeded in "evacuating". "your own money.


FoxCryptoNews summary

Nov 12, 2022

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