Crypto Hedge Fund Galois Confirms $40 Million Exposure to FTX

Crypto hedge fund Galois Capital confirmed that it had up to $45 mn in exposure to the now collapsed FTX cryptocurrency exchange.

Crypto hedge fund Galois confirms $40 million exposure to FTX. (REUTERS)

Crypto hedge fund Galois Capital, known as an early critic of the now failed Terra blockchain and its TerraUSD algorithmic stablecoin, confirmed that it had up to $45 million in exposure to the now collapsed FTX cryptocurrency exchange.

The firm told Bloomberg News in a Twitter direct message that its exposure was in the range of $40 million to $45 million, after it said on Twitter on Friday that it had “significant” funds stuck on FTX. 

Galois co-founder Kevin Zhou gained notoriety earlier this year when he warned about Terra and profited from shorting the now collapsed Luna token. The meltdown of Luna and TerraUSD ecosystem led to a sector contagion, including to the bankruptcy of hedge fund Three Arrows Capital. 

Galois is one of the firms that have come out in the past week to disclose exposure to FTX. Others include prime brokerage Genesis Trading and Michael Novogratz's Galaxy Digital.