Key points to remember
- The crypto hedge fund Galois Capital is closing its doors.
- The company says nearly half of its assets were still on FTX when the stock market crashed.
- He has already sold his FTX claims for 16 cents on the dollar.
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Crypto hedge fund Galois Capital is shutting down after losing about half of its assets to FTX.
16 cents on the dollar
The crypto industry is still grappling with the fallout from the FTX crisis.
Crypto hedge fund Galois Capital has announced that it will shut down its services due to losses incurred during the collapse of FTX. Although it managed to withdraw funds, the company still had nearly half of its assets locked in the exchange when it completely froze withdrawals.
“Given the seriousness of the FTX situation, we do not believe it is sustainable to continue to operate the fund both financially and culturally,” co-founder Kevin Zhou told investors. “Once again, I am terribly sorry for the current situation we find ourselves in.”
According to FinancialTimesGalois managed approximately $200 million in assets in 2022. The hedge fund said clients would receive 90% of unlocked funds on FTX, while the remaining 10% would be temporarily held until discussions with auditors were finalized. .
Galois sold his FTX claims for about 16 cents on the dollar, with Zhou telling investors he preferred to sell the claims early instead of going through a multi-year bankruptcy process.
Zhou caught on Twitter to confirm the report. “I’m proud to say that although we lost almost half of our assets to the FTX disaster and then sold the claim for pennies on the dollar, we are among the few to go out of business with a performance from the start that is always positive,” he posted, before hinting that other Galois-related projects were in the works.
Zhou stood out in the crypto sphere when he repeatedly raised concerns about the stability of Terra’s UST algorithmic stablecoin weeks before its collapse. Galois Capital was also one of the main entities calling on miners to fork Ethereum as it transitioned to Proof-of-Stake to maintain a proof-of-work chain.
Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.