Crypto Hedge Fund Galois Capital Shuts Down — ‘We Misplaced Virtually Half Our Belongings to FTX Catastrophe’February 21, 2023
Crypto hedge fund Galois Capital is shutting down after dropping about half of its belongings to the FTX catastrophe. “Given the severity of the FTX state of affairs, we don’t suppose it’s tenable to proceed working the fund each financially and culturally,” the fund’s co-founder advised buyers.
Crypto Hedge Fund Shuts Down On account of FTX Collapse
Crypto hedge fund Galois Capital is shutting down as nearly half of its belongings are trapped on FTX, the collapsed cryptocurrency trade which filed for bankruptcy in November final 12 months. “Galois Capital is a crypto hedge fund that focuses on over-the-counter buying and selling and algorithmic market-making,” its web site describes.
Galois Capital advised buyers that each one buying and selling has been halted and all its positions unwound, in accordance with paperwork seen by the Monetary Instances. Galois co-founder Kevin Zhou wrote:
Given the severity of the FTX state of affairs, we don’t suppose it’s tenable to proceed working the fund each financially and culturally … I’m terribly sorry concerning the present state of affairs we discover ourselves in.
Shoppers of the hedge fund would obtain 90% of the cash not trapped on FTX, Galois mentioned, including that it’s quickly holding again the remaining 10% till discussions with the fund directors and auditor are finalized. Since informing buyers of its shutdown, Galois has bought the fund’s declare on FTX for about 16 cents on the greenback, the publication conveyed. Galois beforehand advised Bloomberg that it had as a lot as $45 million of belongings uncovered to FTX’s chapter.
Zhou is understood for warning concerning the impending implosion of cryptocurrency terra (LUNA) and stablecoin Terrausd (UST) final 12 months. He additionally profited from shorting LUNA, now referred to as LUNA traditional (LUNC). Zhou opined:
This complete tragic saga ranging from the luna collapse to the 3AC credit score disaster to the FTX/Alameda failure has actually set the crypto area again considerably.
Following information studies of his hedge fund’s closure, Zhou took to Twitter to verify the shutdown of Galois’ flagship fund. He tweeted Monday:
Regardless of that, I’m proud to say that though we misplaced virtually half our belongings to the FTX catastrophe after which bought the declare for cents on the greenback, we’re among the many few who’re closing store with an inception-to-date efficiency which remains to be constructive.
“Though that is the tip of an period for Galois, the work we’ve got completed collectively for the previous few years has not been in useless. I can’t say greater than this for now,” the Galois co-founder concluded.
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