Galois Capital, a crypto hedge fund, 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.
“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 closure was due to the “toxic” nature of the cryptocurrency market.
Given the severity of the FTX situation, we have decided to cease all operations of the fund. It is with great regret that I must inform you of this decision.
Galois announced that its clients would receive 90% of the money not trapped on FTX, adding that it is temporarily 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, Bloomberg conveyed. Galois previously told Bloomberg that it had as much as $45 million of assets exposed to FTX’s bankruptcy.
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