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.
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.