Crypto hedge fund Galois Capital is shutting down after losing about half of its assets in the FTX disaster. “Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally,” the fund’s co-founder told investors.
Crypto Hedge Fund Shuts Down Due to FTX Collapse
Crypto hedge fund Galois Capital is shutting down after its assets were trapped on FTX, the collapsed cryptocurrency exchange which filed for bankruptcy in November last year.
- “Emerging Market Crypto Investors Suffer as FTX and Terra Collapse: BIS Report”
- Crypto Hedge Fund Galois Shuts Down After Losing $40M to FTX – Very Useful
- “From Bitcoin to the Top: How Ordinals Can Elevate the Entire Crypto Industry”
- “Is Terra Luna Classic (LUNC) in Trouble Due to Recent SEC Lawsuit?”
- “Coinbase Executive Calls on US Congress to Strengthen Crypto Regulations”
“Galois Capital is a crypto hedge fund that specializes in over-the-counter trading and algorithmic market-making,” its website describes. Galois Capital told investors that all trading has been halted and all its positions unwound, according to documents seen by the Financial Times.
Galois co-founder Kevin Zhou said the shutdown was forced by the FTX debacle.
Given the severity of the FTX situation, we have decided to close the fund both financially and culturally. I’m terribly sorry about the current situation we find ourselves in.
Galois has announced that it will be returning 90% of the money to its clients that is not currently trapped on FTX. The company is holding back the remaining 10% until discussions with the fund administrators and auditor are finalized.
Since informing investors of its shutdown, Galois has sold the fund’s claim on FTX for approximately 16 cents on the dollar, the publication conveyed. Galois previously told Bloomberg that it had as much as $45 million of assets exposed to FTX’s bankruptcy.
- “BIS Study Shows Retail Investors in Developing Economies Hardest Hit by Crypto Market Turmoil”
- “Former CFTC Chairman Endorses SEC’s Lawsuit Against Terraform Labs and Do Kwon”
- “Terra Luna Classic (LUNC) Price Prediction Amidst SEC Lawsuit Against Terraform Labs and Do Kwon”
- “US Congress Urged to Take Action on Crypto Regulations by Coinbase Executive”
- Is It Too Late to Buy Cardano? Crypto Experts Give Their ADA Price Predictions