Crypto hedge fund Galois Capital is reportedly shutting down and refunding money to investors after being caught in the high-profile implosion of FTX.
According to the Financial Times, Galois Capital halted all trading activities and unwound all open positions as the hedge fund’s viability came into question after about half its assets got trapped on the FTX crypto exchange.
The report says that Galois Capital had about $200 million in assets under management.
Galois Capital co-founder Kevin Zhou says that the “severity of the FTX situation” had made it untenable to “continue operating the fund both financially and culturally”.
The hedge fund’s investors will get 90% of the funds that are not stuck on FTX while the remainder will be withheld temporarily pending discussions with the auditor and administrators, per the report.
According to the Financial Times, Galois Capital opted to sell its claim on FTX for approximately $0.16 on the dollar instead of waiting for a resolution from the bankruptcy court. FTX filed for Chapter 11 bankruptcy in November last year.
While expressing hope that crypto will survive, the hedge fund says that despite the huge losses triggered by the collapse of FTX, its returns since the firm started are in positive territory.
“In spite of that, I am proud to say that although we lost almost half our assets to the FTX disaster and then sold the claim for cents on the dollar, we are among the few who are closing shop with an inception-to-date performance which is still positive…
Crypto will endure. These setbacks are temporary and will come to pass.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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