On November 12, 2022, Galois Capital took to its Twitter account, announcing a fateful and unfavorable connection with FTX. As the bankrupt stock market seized half of the platform’s assets, rendering it destitute, they were eventually forced to cease operations altogether. In an investor letter recently released by Galois Capital, it was stated that all activity on the platform has been halted while any remaining assets would be reimbursed back to customers.
Galois Capital May Not Go To Bankruptcy Process
According to the letter, it has been decided that 90% of Galois Capital’s frozen funds will be redistributed while 10% remains with them until their bankruptcy process is complete. Instead of filing for bankruptcy which could take an extensive period, they are considering selling off receivables as a way out. This unfortunate incident caused by FTX forced many companies to freeze millions worth of funds in their accounts, and sadly, at least $50 million from Galois Capital was also impacted.
2022 became a memorable year for the markets when FTX suddenly declared bankruptcy. The Bahamas then took over the possession and governance of FTX’s digital assets in its aftermath. The public soon learned how much worth had been seized by the Bahamas Securities Commission – $3.5 billion from FTX Digital Markets (the Bahamian branch of FTX) was transferred to their own digital wallets! It is no doubt that this event has left an indelible mark on our economy today. In a complementary declaration, the Bahamian Securities Commission indicated that these funds are “provisionally” held until the Bahamas Supreme Court orders them to be relinquished to customers and creditors.
Sam Bankman-Fried, CEO of FTX, Is Being Tried for Fraud
Bankman-Fried, the former CEO of FTX, was brought before a judge in America due to his involvement with eight crimes, such as fraud and money laundering. As a result of this ruling, Bankman-Fried‘s family paid an astonishing $250 million bail for his release and awaiting trial.
At the hearing he attended, Bankman-Fried remained speechless regarding the accusations against him. When speaking with BBC, however, he tried to paint a false narrative that suggested his unawareness of the situation by dismissingly proclaiming: “I did not knowingly commit fraud. I don’t think I am scamming. I didn’t want any of this to happen. I certainly wasn’t as competent as I thought I was.” Whether or not these words contained truth is yet unknown – but one thing is certain; it left an army of victims behind who would disagree with his statement entirely.
You may be interested in: Shell and Vitol Accused of Breaking Russian Embargo