- The hedge fund Galois Capital has $40 million frozen at FTX.
- Galois Capital sold its bankruptcy claims for 16 cents on the dollar.
Today the world’s leading crypto hedge fund Galois Capital announced its closure after losing significant funds in the cryptocurrency exchange FTX collapse. Galois stated in a tweet, “Thank you all for the kind words. Yes, it is true that our flagship fund is shutting down”.
I appreciate the outpouring of support today when the FT article came out. Thank you all for the kind words. Yes, it is true that our flagship fund is shutting down.
— Galois Capital (@Galois_Capital) February 20, 2023
The New Victim
After a severe loss, the crypto exchange FTX reportedly filed for bankruptcy on November 11th, 2022. Also, FTX’s demise is a major setback for the cryptocurrency industry. Following that, leading big shots such as crypto lender Genesis filed bankruptcy due to FTX’s heavy weight.
However, as the new victim, Galois Capital has decided to quit after experiencing half of its assets being trapped in the bankrupt exchange. On November 12, 2022, the hedge fund Galois Capital confirmed in its tweet from its official account that it has a large exposure in the FTX platform. Following that, the hedge fund has made the decision to close and pay back crypto investors all funds they called “this is the end of an era for Galois”.
The official announcement comes after the Financial Times reports. Further, Galois Capital’s co-founder Kevin Zhou apologized to their investors and made clear that they couldn’t continue their operation given how serious the FTX situation was. According to the FT, Galois reportedly sold its bankruptcy claims for 16 cents on the dollar.
Also, the hedge fund Galois Capital stated that;
Crypto will endure. These setbacks are temporary and will come to pass. Stay strong and good luck. I’ll see you guys around.
According to CoinMarketCap, the global market cap surged around 1.6% to hold $1.18 trillion. At the time of writing, Bitcoin (BTC) traded at $24,818 and soared over 14% in a week. Also, BTC ‘flipped’ Visa, the world’s largest payments gateway by its ‘Market Cap’.
