The co-founder of Galois Capital, Kevin Zhou, disclosed that half of the hedge fund’s assets were stuck on the now-bankrupt crypto exchange FTX.

Now, another crypto asset management firm named Ikigai has revealed that it had stored a large majority of its assets on the crypto exchange.

Travis Kling, the chief investment officer of Ikigai, revealed the news on Twitter and stated that there was a great deal of uncertainty about what to expect in the future.

FTX scandal losses

The FTX scandal has resulted in losses for many and the latest to join the list is a hedge fund named Ikigai. Its chief investment officer published a Twitter thread to reveal the situation.

Kling said that he did not have good news to share and went on to say that they were also a victim of FTX’s downfall because a significant majority of the total assets of the hedge funds were on FTX.

He stated that they had tried to make a withdrawal on Monday morning, but had not been able to get much of it out, so they were also stuck like the rest of the FTX users.

Companies suffer

Something similar had happened to Galois Capital, another hedge fund, as its co-founder had disclosed that almost half of its capital was on the crypto exchange.

Kling published his thread on Twitter on November 14th, which disclosed that the hedge fund had been communicating with its investors since Monday.

He remarked that they had received a great deal of support, which was heartwarming, considering the circumstances.

However, he did add that he was not very pleased with his own decisions. He took the blame and said that he was the one who had invested his investor’s money and had been unable to manage the risk.

He apologized for his actions, as he had also endorsed FTX publicly a number of times, which turned out to be wrong.

Ikigai and Galois Capital are not the only two companies that have been exposed to FTX’s collapse.

Other victims

According to reports, Multicoin Capital, a crypto venture capital firm, also had about $25 million on the exchange.

Likewise, the third-quarter earnings report published by Galaxy Digital also showed that its exposure to FTX in digital assets and cash was around $76.8 million.

FTX filed for Chapter 11 bankruptcy protection on November 11th in the United States. The creditors of the company will now have to wait for the bankruptcy proceedings before they can get their funds.

Zhou from Galois has already informed investors that the process can take years to complete. Kling from Ikigai said that they would get a timeline for the potential recovery of their funds from FTX in the next few weeks or months.

The executive said that they would be able to make a better decision about whether they can keep Ikigai running, or they would also have to wind down their own operations, given the extent of their exposure.