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Crypto Hedge Fund Galois Capital Shuts Down – “We Lost Almost Half of Our Assets to the FTX Disaster” – Featured Bitcoin News
Crypto hedge fund Galois Capital shuts down after losing roughly half of its assets to the FTX disaster. “Given the seriousness of the FTX situation, we do not believe it is sustainable to continue operating the fund both financially and culturally,” the fund’s co-founder told investors.
Crypto Hedge Fund Closes Due to FTX Collapse
Crypto hedge fund Galois Capital is shutting down as nearly half of its assets are trapped in FTX, the collapsed cryptocurrency exchange that filed for bankruptcy last November. “Galois Capital is a crypto hedge fund specializing in over-the-counter trading and algorithmic market making,” the site describes.
Galois Capital told investors that all trading has been halted and all positions liquidated, according to documents seen by the Financial Times. Galois co-founder Kevin Zhou wrote:
Given the severity of the FTX situation, we do not believe it is sustainable to continue running the fund both financially and culturally…I am very sorry for the current situation we find ourselves in.
Clients of the hedge fund will receive 90% of the money not captured on FTX, Galois said, adding that it is temporarily withholding the remaining 10% until discussions with fund managers and auditors are concluded. Since informing investors of the shutdown, Galois has sold the fund’s claim to FTX for about 16 cents on the dollar, the publication reported. Galois previously told Bloomberg that they had as much as $45 million of assets exposed to FTX’s bankruptcy.
Zhou is known for warning about the impending implosion of cryptocurrency terra (LUNA) and stablecoin Terrausd (UST) last year. He also profited by shorting LUNA, now called LUNA classic (LUNC). Zhou thought:
This whole tragic saga from the luna collapse to the 3AC credit crisis to the FTX/Alameda failure has certainly set the crypto space back significantly.
Following news reports of the hedge fund’s closure, Zhou took to Twitter to confirm the closure of Galois’ flagship fund. He tweeted on Monday:
Despite that, I am proud to say that even though we lost almost half of our assets due to the FTX disaster and subsequently sold the claim for cents on the dollar, we are among the few closing shop with an achievement to date which is still positive.
“Although this is the end of an era for Galois, the work we have done together in recent years has not been in vain. I cannot say more than this for now,” concluded the Galois co-founder.
What do you think of crypto hedge fund Galois Capital closing due to its assets being trapped on the collapsed crypto exchange FTX? Let us know in the comments section below.
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