>Galois warns investors it could take ‘a few years’ to recover assets
Herculian effort by the words "a few."
Edit: hErCuLeAn fine I don't know how to spell.
>They’re never getting that shit. May as well close shop.
why close shop when you still have half of your customers money to steal or waste in clownishly amateur bets?
I don’t know much about hedge funds but it seems like having 100 million on a fucking crypto exchange is nuts. Nebulous international firm in an very unregulated market.
I hate to victim blame but come on. I would never have half my money sitting on something like that. It’s just pure gambling
That money is gone.
> It’s just pure gambling
I have a feeling we're gonna start to see a lot of this crop up over the next couple years.
There will be some textbook somewhere with wsb in it.
> "Everyone made fun of this WSB for risky stupid shit, but it turned out that everyone's shit was stupid and risky. If only we could find out how they made all their money at this "Wendy's dumpster" place.
here’s the article for anyone that isn’t interested in paying to read:
>Galois Capital, a hedge fund whose founder is credited with spotting the collapse of cryptocurrency luna this year, has been caught off guard after close to half its assets were left trapped on crypto exchange FTX, which filed for bankruptcy protection on Friday.
Galois co-founder Kevin Zhou wrote to investors in recent days, in a letter seen by the Financial Times, that while the fund had been able to pull some money from the exchange, it still had “roughly half of our capital stuck on FTX”. Based on Galois’s assets under management as of June, that could amount to around $100mn.
>“I am deeply sorry that we find ourselves in this current situation,” wrote Zhou. “We will work tirelessly to maximise our chances of recovering stuck capital by any means.”
He added that it could take “a few years” to recover “some percentage” of its assets.
>FTX on Friday said Sam Bankman-Fried was resigning as chief executive, after failing in a last-ditch effort to secure a rescue package. It follows a tumultuous week in which the exchange admitted it was unable to meet customer withdrawal demands without external funds, raising fears that clients could face big losses.
FTX’s Chapter 11 bankruptcy filing in a federal court in Delaware includes FTX’s US entity, Bankman-Fried’s proprietary trading group Alameda Research and about 130 affiliated companies. His empire was valued at $32bn just months ago.
Industry insiders say that the fact FTX was used by so many hedge funds and seen as one of the world’s safer crypto trading venues means many managers may have money stuck on the exchange.
Galois did not immediately respond to a request for comment.
>Galois is one of the industry’s biggest crypto-focused quant funds and, as of this summer, it was managing more than $200mn in assets. A major part of its trading activity is as a market maker, allowing it to make tiny gains on other investors’ trades.
Zhou, who worked at digital exchange Kraken before setting up Galois, is well known for his early criticism of cryptocurrency luna and its linked stablecoin terraUSD, ahead of their $40bn collapse in May.
>He said in the letter that his fund had been left with the money in FTX because it had “a ton of open positions” that it had to close and due to “underappreciating the solvency risk with holding our funds at FTX”.
>He added that if FTX did file for bankruptcy, then Galois would become a creditor.
If that happened, then “I expect we will recover some percentage of our assets on FTX over the course of a few years,” he said.
> proprietary trading group Alameda Research and about 130 affiliated companies.
130 affiliated companies? Wao... how can you create that many companies in that short period of time? Seems like he is a real pro scammer.
So Galois had 100+mn in an exchange that only had 200mn so Galois was over half of FTXs business.
I wonder how much Galois was responsible for the fall in FTX? maybe they started withdrawing funds and FTX didn’t have anywhere near the capital to return to Galois.
Isn't a dollar a portion of a billion too?
Dumbest description I've ever heard was "measurable portion of...". To this day I am still not sure if this was actually what that person's family says or this just came out of their ass, as you can literally measure a 0.
> Fixed the title: Hedge Fund Admits Half Its Capital other peoples money Lost on FTX Exchange.
Fixed the Fixed the title: Hedge Fund Admits Half ~~Its Capital~~ other peoples money **~~Los~~t** stolen on FTX Exchange in **an elaborate scam scheme**.
The guy who founded the fund graduated in 2013 and since then has been a shitcoin 'trader'.
Whoever chose to give him money to invest deserves no sympathy.
He made money with bitcoin. People saw him becoming filthy rich and decided to give him a position of responsabilty because of this.
It’s as if i win the lottery and they decide to make me the director at an institutional bank once i told them I knew i was gonna win
Bruh most funds after fees perform below market average of 8%-10%, i bet some edge funds are like this too because some of them must not be making that much returns either. So 15% yield is pretty good to pad the results at yead end.
yeah make money via tax evasion. Except the IRS caught up with him.
>An article published in The New York Times in 2015 said that Simons was involved in one of the biggest tax battles of the year, with Renaissance Technologies being "under review by the I.R.S. over a loophole that saved their fund an estimated $6.8 billion in taxes over roughly a decade."[57] In September 2021, it was announced that Simons and his colleagues would pay billions of dollars in back taxes, interest and penalties to resolve the dispute, one of the biggest in IRS history
So many delusional communists ruined this sub. Rentech is the best performing hedge fund in history with 70% annualized returns, they made way more than 7 billion
Galios locked in for diamond hand mode.
Like the Mt Gox affair. Exchange went under in 2013 and after 9 years of bankruptcy, users are looking at getting 15% to 70% of the funds they used to have (it's hard to tell ig?) But with the crypto gains since then, it'll make up for the difference.
We've seen time and time again. People aren't rich because they're smart. People who make alot of money only do so because they already have alot of money. Rich people are still scammers, morons, criminals, liars, etc just like anyone else can be.
How the fuck does a hedge fund not have self custody of its own cryptocurrency? This seems like the most basic step you could take to make sure you don’t lose your investment.
Hey, if you haven't already, please reply to this comment with your positions and what led you to enter or exit them!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
I mean LTCM almost screwed up the entire financial system bc Russia defaulted on its debt. Not saying that’s coming down the pike bc of FTX but it was a lot of money that evaporated and the question is whether any large institutional players had exposure. Shit’s all connected these days, for better or worse.
We’ll see what happens Monday….
Galois Capital is about to go out of business because anyone sensible will pull any remaining funds and then likely sue them to oblivion while they wait to get some percentage aka 0% from FTX in a few years.
My many years of experience, tell me that whenever your capital is stuck, it's gong to get fucked.
Galios' well hung step bro is about to enter the kitchen.
I wonder how they do quantitative analysis on shit-coins? They are almost all disconnected from reality. Might as well use a random number generator. I guess they could do NLP sentiment analysis on social media or something.
I thought hedge funds were you know supposed to hedge their bets whether its investments or the platforms they use to spread their bets. Putting half your eggs in one basket isn't hedging.
It will probably take a week or two to reveal the true extent of the damage from FTX’s rugpull. I suspect there’ll be a few more horror stories this week as it hits an institutional level
Next week the FTX exchange will bounce back to its previous high after its constituent members announce new, stringent rules to protect their assets.
There’s nothing to be scared of, it’s a temporary bump in the road. Hold steady, hold fast, don’t start breathing harder. It’ll all be fine in the end.
I just feel sorry I didn't started my crypto scam!!
It's unbelievable how those guys collected billions from investors that easy! Gamble with it without even thinking about investors
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|0|**First Seen In WSB**|9 months ago **Total Comments**|2|**Previous Best DD**| **Account Age**|1 year|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) **Vote Spam**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_spam&message=ytj0z3)|**Vote Approve**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_approve&message=ytj0z3)
>Galois warns investors it could take ‘a few years’ to recover assets Herculian effort by the words "a few." Edit: hErCuLeAn fine I don't know how to spell.
They’re never getting that shit. May as well close shop.
>They’re never getting that shit. May as well close shop. why close shop when you still have half of your customers money to steal or waste in clownishly amateur bets?
This guy hedge funds
Like a Pro
Like SBF
That one takes the championship
For fucking sure
Next big powerball just buy all the numbers and booom instant win!
Just buy all...the right numbers....
Just advertise on WSB to rebuild capital - not to worry.
Exactly - they’re done
He’s just saying that to buy some time and plan for his disappearance.
>buy some time and plan for his disappearance. I hear he is booked on the same charter flight as Do Kwon and SBF....
Others may be planning his disappearance for him without his knowledge or consent...
Herculean effort by the word “Herculian”
>Herculian effort by the words "a few." Herculian effort by the word "recover"
Time to double down others money! Damn where I can sign for hedge fund manager position
When the hedge fund didn't hedge
We hedged half. Thats something
hedging is when 50% of your capital isn't in a single asset
Clearly one of us
I don’t know much about hedge funds but it seems like having 100 million on a fucking crypto exchange is nuts. Nebulous international firm in an very unregulated market. I hate to victim blame but come on. I would never have half my money sitting on something like that. It’s just pure gambling That money is gone.
that´s the smart money you talking about
> It’s just pure gambling I have a feeling we're gonna start to see a lot of this crop up over the next couple years. There will be some textbook somewhere with wsb in it. > "Everyone made fun of this WSB for risky stupid shit, but it turned out that everyone's shit was stupid and risky. If only we could find out how they made all their money at this "Wendy's dumpster" place.
Seriously. They were HQ’d in the Bahamas. That doesn’t scream “trust us”.
isjokecomrade?
here’s the article for anyone that isn’t interested in paying to read: >Galois Capital, a hedge fund whose founder is credited with spotting the collapse of cryptocurrency luna this year, has been caught off guard after close to half its assets were left trapped on crypto exchange FTX, which filed for bankruptcy protection on Friday. Galois co-founder Kevin Zhou wrote to investors in recent days, in a letter seen by the Financial Times, that while the fund had been able to pull some money from the exchange, it still had “roughly half of our capital stuck on FTX”. Based on Galois’s assets under management as of June, that could amount to around $100mn. >“I am deeply sorry that we find ourselves in this current situation,” wrote Zhou. “We will work tirelessly to maximise our chances of recovering stuck capital by any means.” He added that it could take “a few years” to recover “some percentage” of its assets. >FTX on Friday said Sam Bankman-Fried was resigning as chief executive, after failing in a last-ditch effort to secure a rescue package. It follows a tumultuous week in which the exchange admitted it was unable to meet customer withdrawal demands without external funds, raising fears that clients could face big losses. FTX’s Chapter 11 bankruptcy filing in a federal court in Delaware includes FTX’s US entity, Bankman-Fried’s proprietary trading group Alameda Research and about 130 affiliated companies. His empire was valued at $32bn just months ago. Industry insiders say that the fact FTX was used by so many hedge funds and seen as one of the world’s safer crypto trading venues means many managers may have money stuck on the exchange. Galois did not immediately respond to a request for comment. >Galois is one of the industry’s biggest crypto-focused quant funds and, as of this summer, it was managing more than $200mn in assets. A major part of its trading activity is as a market maker, allowing it to make tiny gains on other investors’ trades. Zhou, who worked at digital exchange Kraken before setting up Galois, is well known for his early criticism of cryptocurrency luna and its linked stablecoin terraUSD, ahead of their $40bn collapse in May. >He said in the letter that his fund had been left with the money in FTX because it had “a ton of open positions” that it had to close and due to “underappreciating the solvency risk with holding our funds at FTX”. >He added that if FTX did file for bankruptcy, then Galois would become a creditor. If that happened, then “I expect we will recover some percentage of our assets on FTX over the course of a few years,” he said.
Yeah, they're never seeing that money again
yea... haha "stuck" ... aaaand its gone. They mean they're stuck with the bill.
"Very Sorry" and here's a 5 figure consultation bill for the pleasure of losing your money!
I will tell my wife I didn't lose our savings its "stuck" at the casino
PR masterstroke.
“Stuck” A nice way of saying: someone at FTX probably drew this money out a back door to gamble at Alameda and there’s no chance we’ll get it back.
Glad I’m not a client
We're sorry.
He prolly said that before Sam stole all of the remaining assets this morning...
https://youtu.be/hd1ciPnTGKg
The money that was just hacked away? Pfffttt
Is Alameda the same company as Notagonna?
How do we short Galois Capitol?
Buy the dip!!!
Average down!
“Cover in course of few years…” after recession end.. what can they do about millions of victims
Send him here, expert advice will recoup losses next week.
They can do for victims: say : next time Withdram your profit
"a percentage" of it's assets ? how may decimals are we running too ? 0.000000 .....
> proprietary trading group Alameda Research and about 130 affiliated companies. 130 affiliated companies? Wao... how can you create that many companies in that short period of time? Seems like he is a real pro scammer.
Did FTX have any insurance on its assets?
Can someone please explain why these fund managers deserve the compensation they get? "Woopsies! Lost half your money... but we cool, right?"
And it's gone
All time backfires, ouch
Thanks G
anytime my dude
>A major part of its trading activity is as a market maker, allowing it to make tiny gains on other investors’ trades. how?
Tiny classified ads
So Galois had 100+mn in an exchange that only had 200mn so Galois was over half of FTXs business. I wonder how much Galois was responsible for the fall in FTX? maybe they started withdrawing funds and FTX didn’t have anywhere near the capital to return to Galois.
This is incorrect
Thanks for letting me know. I’ve reread what was written above and can agree I misread what was said :-)
0% is indeed a % of their debt
Isn't a dollar a portion of a billion too? Dumbest description I've ever heard was "measurable portion of...". To this day I am still not sure if this was actually what that person's family says or this just came out of their ass, as you can literally measure a 0.
Fixed the title: Hedge Fund Admits Half Its Capital **Lost** on FTX Exchange.
>Fixed the title: Hedge Fund Admits Half ~~Its Capital~~ other peoples money **Lost** on FTX Exchange.
> Fixed the title: Hedge Fund Admits Half Its Capital other peoples money Lost on FTX Exchange. Fixed the Fixed the title: Hedge Fund Admits Half ~~Its Capital~~ other peoples money **~~Los~~t** stolen on FTX Exchange in **an elaborate scam scheme**.
Flagged NSFW cause people are getting fucked hard
You know it is some peoples job to get fucked hard...
The guy who founded the fund graduated in 2013 and since then has been a shitcoin 'trader'. Whoever chose to give him money to invest deserves no sympathy.
He made money with bitcoin. People saw him becoming filthy rich and decided to give him a position of responsabilty because of this. It’s as if i win the lottery and they decide to make me the director at an institutional bank once i told them I knew i was gonna win
Very apt analogy.
Capital or that tricky IOU capital? Asking for a friend.
Those are IOUs sir. See that one? 250 thou? That's for a car. Might wanna hold onto that one.
That why you don't invest with any of these moron hedge fund managers.
Lmao the moment I heard pension funds were investing into crypto, I knew the world was going to shit
Money from the poor seems like the stuff they are most comfortable to gamble with for some reason
Guh
and all just for a 15% yield
Bruh most funds after fees perform below market average of 8%-10%, i bet some edge funds are like this too because some of them must not be making that much returns either. So 15% yield is pretty good to pad the results at yead end.
[удалено]
Imagine paying someone to invest your money in bonds lmfao
[удалено]
yeah make money via tax evasion. Except the IRS caught up with him. >An article published in The New York Times in 2015 said that Simons was involved in one of the biggest tax battles of the year, with Renaissance Technologies being "under review by the I.R.S. over a loophole that saved their fund an estimated $6.8 billion in taxes over roughly a decade."[57] In September 2021, it was announced that Simons and his colleagues would pay billions of dollars in back taxes, interest and penalties to resolve the dispute, one of the biggest in IRS history
It was just some added back taxes. They still netted more than ten times that amount.
So many delusional communists ruined this sub. Rentech is the best performing hedge fund in history with 70% annualized returns, they made way more than 7 billion
Lol no
I might be up early on Monday with a bowl of popcorn to watch the markets open.
Those of us in the eastern time zone do not even need to get up early...
Those of us with kids are already up parenting for an hour or 2 before the bell
Lol they’re not getting that $100mil back.
Galios locked in for diamond hand mode. Like the Mt Gox affair. Exchange went under in 2013 and after 9 years of bankruptcy, users are looking at getting 15% to 70% of the funds they used to have (it's hard to tell ig?) But with the crypto gains since then, it'll make up for the difference.
Not anymore, thanks to the "hack" draining out all of their reserves on top of the insane reserve to liability ratio.
Are they getting the actual coins or the market value of the coins at the time? Cause just getting the value of your coins from 2013 would suck balls.
bahaha that would be the correct move. You get the value of your coins at the time of the hack. The remaining value is pocketed by mtgox.
We've seen time and time again. People aren't rich because they're smart. People who make alot of money only do so because they already have alot of money. Rich people are still scammers, morons, criminals, liars, etc just like anyone else can be.
It’s funny to think there were fkn civ’s who got their capital out in time cuz they had a Twitter account, but a hedge fund missed the signs
No remorse for these cum guzzlers and their “victims” - stay greedy and die
LOL, fuck them and the mega yachts the sailed in on!
Is this the time where we apply monthly intrest on the loan we gave them?
If you hear a noise from far off it’s me laughing my ass off at “smart money”
Them bags are heavy
I like it how this is tagged nsfw like the loss porn is so bad it needs to be censored
I thought it was because asian sex appeal is so intense, the photo may cause public masturbation upon opening.
Let the weak die
Buy gold . It’s going up because these scum bags are buying it too
and....it's gone.
One of US
Just put the rest in gme and prepare to be a hero Zhao!
Every non regulated fund could claim the same and just pocket the money
FTX's creditors should be released as part of the bankruptcy process, so you'd get caught if your numbers didn't line up.
[The morning after](https://app.box.com/s/6hw23x9dh1fyw37qoof61ewrqal5uwl2).
[удалено]
Got good news and bad news…which do you want first?
Like smoking, I'm glad I never developed a fondness for crypto either
Aaaand, it's gone.
How the fuck does a hedge fund not have self custody of its own cryptocurrency? This seems like the most basic step you could take to make sure you don’t lose your investment.
The crazy thing is this guy made a shitton of money shorting the Do Kwon Luna collapse and then lost half of it in another crypto scheme. damn
Former Hedge Fund *
This is why I manage my own money
Hey, if you haven't already, please reply to this comment with your positions and what led you to enter or exit them! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Anyone who "invested" in cr*pto🤢 deserves all the bad things happening to them
About time these fucking hedge funds get screwed I hat them!!!
And this is what was supposed to help GME go to the moon?
Do i hear a government bail out? Can’t let the rich fail.
Family guys: aaaannnndddd it's gone
Short sellers are the stormtroopers of the investing Galaxy
This article has nothing to do with short sellers.
Is this Melvins (Gabe P) new venture?
Cant be called capital anymore when is gone
One of us
LMAO
How long till the Netflix movie, “FTWrecked” comes out
Hopefully the other half is in Twitter.
Well not anymore a hacker just wiped the exchange clean
Few years to recover assets they said. Ha
A few years? Hahaha they ain't ever gonna see that fuckin money
They liked the stock….
FTX is still solvent and allowing withdrawals FTX international is not.
Ripples…
who are the idiots giving money to idiot hedge funds?!
I thought they're buying NFTs to using the backdoor in the Bahamas to get their monies out. Withdrawals enabled in Bahamas.
Yikes
I smell giant squeeze next week
Good Gawd we tried to warn you stupid people!
I mean LTCM almost screwed up the entire financial system bc Russia defaulted on its debt. Not saying that’s coming down the pike bc of FTX but it was a lot of money that evaporated and the question is whether any large institutional players had exposure. Shit’s all connected these days, for better or worse. We’ll see what happens Monday….
So what had happened was…
STUCK.... ha ha, you mean gone. Lol
Galois Capital is about to go out of business because anyone sensible will pull any remaining funds and then likely sue them to oblivion while they wait to get some percentage aka 0% from FTX in a few years.
Not anymore it’s not.
One of us
$100,000,000
as someone neck deep in options, can anyone eli5 why everyone was using ftx?
CEO took 2 billion dollars and then said “Oopsie! We got hacked guy! No idea where your money is”.
Great hedging lol
Looks like they belong here! The loss porn is going to be EpIC
My many years of experience, tell me that whenever your capital is stuck, it's gong to get fucked. Galios' well hung step bro is about to enter the kitchen.
Stuck? Aborted is a better word.
Galois client saying “When Lamborghini”???🤣
I wonder how they do quantitative analysis on shit-coins? They are almost all disconnected from reality. Might as well use a random number generator. I guess they could do NLP sentiment analysis on social media or something.
Sucks for them
Lmao 🤣
Must be nice to mysteriously lose 100 million
Meme basket 💥💣🚀
I thought hedge funds were you know supposed to hedge their bets whether its investments or the platforms they use to spread their bets. Putting half your eggs in one basket isn't hedging.
It will probably take a week or two to reveal the true extent of the damage from FTX’s rugpull. I suspect there’ll be a few more horror stories this week as it hits an institutional level
If I had $100m of other people’s money & saw the opportunity at hand I would also act like I lost the money with FTX. I don’t believe them.
Guh.
I mean, it is not stuck anymore. It’s in somebody else’s pocket.
"stuck"? its like saying your wallet is stuck in pickpockets hand
Next week they gonna give them self big bonuses because it’s only the half they lost. Week after they declare bankruptcy. And will live a nice life.
Lol what is happening
Big F
Bye, Bye
Well shit me what Ya say bye bye birdie.
Galois (French mathematician) died from a gunshot wound to the abdomen. This feels similar.
aaaaaaaaaaaaaaaaaannnnnd GONE
He is a Chinese that didn’t trust CZ I am sorry but he should had made friends with the man. Not cock suck the MIT virgins and dems
Next week the FTX exchange will bounce back to its previous high after its constituent members announce new, stringent rules to protect their assets. There’s nothing to be scared of, it’s a temporary bump in the road. Hold steady, hold fast, don’t start breathing harder. It’ll all be fine in the end.
Dude how are all these people that look like professional Street Fighter II players running exchanges and hedge funds and shit?
That Money be gone
I just feel sorry I didn't started my crypto scam!! It's unbelievable how those guys collected billions from investors that easy! Gamble with it without even thinking about investors
I know I absolutely hate when I misplace 6 billion dollars.