Crypto hedge fund Galois Capital is reportedly shutting down and refunding money to investors after being caught in the high-profile implosion of FTX. According to the Financial Times, Galois Capital halted all trading activities and unwound all open positions as the hedge fund’s viability came into question after about half its assets got trapped on […]
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Crypto hedge fund Galois Capital is shutting down after losing about half of its assets to 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 […]
Galois Capital will return 90 percent of the funds that are available to investors and will hold on to the remaining 10 percent temporarily.
Hedge fund Galois Capital, one of the victims of the FTX collapse, has thrown in the towel after half of its assets got trapped in the bankrupt exchange. The fund has finally decided to shut down and return its remaining assets to investors.
On Nov. 12, the hedge fund admitted in an announcement from its official Twitter account that it had significant exposure to the FTX exchange.
For the record, yes we did have significant funds stuck on FTX. No, we did not use any Bahamian method to move funds out.
— Galois Capital (@Galois_Capital) November 11, 2022
According to a report by mainstream media outlet Financial Times, the fund has now told investors in a letter that all trading was halted and the fund rolled back its positions. Kevin Zhou, the co-founder of Galois Capital, apologized to their investors and pointed out that the severity of the FTX situation makes them unable to justify continuing its operations.
In addition, the hedge fund said that investors will receive 90 percent of the available funds which are not trapped in the FTX exchange. The remaining 10 percent will be kept by the company temporarily until discussions are finalized.
Apart from these, Zhou also expressed their inclination to sell the hedge fund’s claims instead of waiting on a lengthy bankruptcy process that could take a decade. According to the Galois Capital co-founder, buyers of these claims are more capable of pursuing claims in bankruptcy courts.
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The FTX bankruptcy froze millions worth of company funds, including firms like New Huo Technology and Nestcoin. Galois Capital is also one of the many victims of the FTX debacle, with at least $50 million in funds stuck in the exchange.
Meanwhile, similar to Galois Capital’s approach, the largest Mt. Gox creditor has also chosen an early payout option instead of waiting for a lengthy legal process that could potentially take years. On Feb. 17, Mt. Gox Investment Fund said that it chose to be paid in September instead of waiting longer to get its assets back.
After Kevin Zhou, the co-founder of the hedge fund Galois Capital, revealed half of the firm’s assets were held on FTX, another crypto asset management firm called Ikigai detailed that “a large majority of the hedge fund’s total assets” were stored on FTX. Ikigai chief investment officer, Travis Kling, told the public on Twitter and […]
According to the co-founder of Galois Capital, the hedge fund manager who warned about the Terra collapse before it happened, half of the hedge fund’s capital is left trapped on FTX. Galois co-founder, Kevin Zhou, wrote a letter to investors explaining the situation and said he was “deeply sorry” about the turn of events. Galois […]
While there’s 50 days left until the week of September 19, the crypto community has been discussing whether or not Ethereum developers will delay the penciled-in date for The Merge. Moreover, on July 27, the crypto hedge fund Galois Capital published a survey on Twitter that indicates more than 33% of the survey’s respondents think […]