Galois Capital, a virtual cryptocurrency hedge fund, announced that half of its capital is trapped in FTX.

According to a news report ReutersGalois co-founder Kevin Chu has said that the funding involved is estimated at $100 million, even though the company initially pulled some money from cryptocurrency exchange FTX.

Zhou wrote to investors that he was very sorry for the situation as he did not expect the 3AC situation to repeat itself with FTX.

He said it may take a few years before the fund recovers from its current ordeal.

Galois Capital tweeted through the company’s official page that the funds were not recovered using any process from the Bahamas while responding to allegations of illegal transfer of funds from FTX using Bahamian accounts.

He hinted that Galois had no debts, so only his assets would be affected.

Chu explains:

The Fund is currently debating whether to continue operating as normal, pursue an acquisition or become a commercially-proprietary business.

The news comes after Galois initially offered suggestions on how FTX could deal with its financial crisis.

Galois tweeted that FTX could apply a proportional debt reduction to all accounts, give the amount a Bitfinex-style debt claim code, and reduce staffing while running FTX.

Effect of FTX Discontinuation:

Galois Capital is not the only cryptocurrency company experiencing chaos as a result of its fall from the FTX trading platform.

BlockFi has recently suspended user withdrawals following the financial crisis with FTX.

BlockFi, which is valued at $3 million, announced earlier in the week that it would halt withdrawals, including deposits, due to uncertainty over issues with FTX.

BlockFi earlier this year arranged a $680 million deal with FTX.US that included a $400 million credit facility and an option for FTX to buy BlockFi.

But the recent FTX crash has brought BlockFi back to its old problems.

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