According to the co-founder of Galois Capital, the hedge fund manager who warned about the Terra collapse before it happened, half of the hedge fund’s capital is left trapped on FTX. Galois co-founder, Kevin Zhou, wrote a letter to investors explaining the situation and said he was “deeply sorry” about the turn of events.

​​“I am deeply sorry that we find ourselves in this current situation,” Zhou said in the letter to Galois clients. “We will work tirelessly to maximise our chances of recovering stuck capital by any means,” the Galois co-founder added. Zhou further stated that Galois had “a ton of open positions” that it was forced to close because of “underappreciating the solvency risk with holding our funds at FTX.”