“I’m pretty disgusted with the space as a whole…So many f*cking sociopaths were granted the opportunity to do so much damage,” the fund manager tweeted.
Ikigai Asset Management’s Travis Kling disclosed that the crypto fund had a “large majority” of its assets on the bankrupt crypto exchange FTX.
“Last week Ikigai was caught up in the FTX collapse. We had a large majority of the hedge fund’s total assets on FTX,” Kling tweeted.
He added that when they tried to withdraw their positions on Monday, they “got very little out” and are “now stuck alongside everyone else.”
On Friday, FTX founder Sam Bankman-Fried announced that the crypto exchange and its sister hedge fund Alameda Research all filed for chapter 11 bankruptcy.
Kling claims full responsibility, saying he lost his investors’ money “after they put faith in [him] to manage risk.”
“I have publicly endorsed FTX many times and I am truly sorry for that. I was wrong,” he added.
In the near-term, the fund is going to continue trading the assets that are not stuck in FTX. But Kling admits that it’s really hard to say how the timeline and potential recovery for FTX customers will happen.
“I’m at a loss for words at the depth & breadth of the pieces of shit that permeate crypto. So many f*cking sociopaths were granted the opportunity to do so much damage,” he blasted at the industry’s outlook. “It’s hard for me to imagine the space bouncing back quickly from this ordeal. Too many got burned too hard.”
READ: The Rise and Fall of FTX Explained
Should the industry comes out surviving after this fresh beating, Kling argued that “the entire concept of trust has to be completely rearchitected.”
“It’s obvious now that the space has not done enough to identify and expel bad actors. We’re letting way too many sociopaths get way too powerful and then we all pay the price,” he quipped. He added that should Ikigai continue on, it will “pledge to fight harder in this regard.”
“It’s a fight worth fighting,” he summed.
According to Kling, Ikigai had secured $30 million from existing investors to form a venture fund that was unaffected by FTX’s demise. The future steps for this fund are still being determined.
Information for this briefing was found via Coindesk and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
