Crypto Hedge Fund Galois Capital Shutting Down After FTX Debacle
According to recent reports, Galois Capital, a cryptocurrency hedge fund, is ceasing operations and returning the remaining funds to investors.
This decision was made in light of the financial and cultural challenges that the collapsed cryptocurrency exchange FTX’s situation presented.
The co-founder of Galois Capital, Kevin Zhou, expressed regret over the situation, and the firm sold its bankruptcy claims for 16 cents on the dollar.
The closure of Galois Capital means that investors will receive 90% of their money not held on FTX.
Galois Capital could have had approximately $100 million trapped on the exchange, which could not meet customer withdrawal requests, and filed for bankruptcy protection in November. Zhou had previously warned investors that it might take a few years to recover “some percentage” of the funds.
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The remaining 10% will be held until discussions with the administrators and auditor are completed.
Zhou also commented on the unfortunate events that have impacted the crypto space, including the FTX/Alameda failure and the Three Arrows Capital credit crisis. Still, he remains hopeful about the long-term future of crypto.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
