key takeaways
- Galois Capital crypto hedge fund is shutting down.
- The firm claims that almost half of its assets were still on FTX when the exchange crashed.
- He 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 roughly half of its assets to FTX.
16 cents on the dollar
The crypto industry is still dealing with the fallout from the FTX crisis.
Crypto hedge fund Galois Capital announced that it would shut down its services due to losses suffered in the FTX collapse. Despite managing to withdraw some funds, the firm still had almost half of its assets locked up on the exchange when it froze withdrawals entirely.
“Given the severity of FTX’s situation, we do not believe it is viable to continue operating the fund both financially and culturally,” co-founder Kevin Zhou told investors. “Once again, I am very sorry for the current situation we find ourselves in.”
According to the financial timesGalois managed about $200 million in assets in 2022. The hedge fund indicated that clients would receive 90% of the funds that were not locked in FTX, while the remaining 10% would be temporarily held until talks with the investors were finalized. auditors.
Galois sold his FTX claims for about 16 cents on the dollar, and Zhou explained to investors that he preferred to sell the claims early rather than go through a multi-year bankruptcy process.
zhou took to Twitter to confirm the report. “I am proud to say that even though we lost nearly half our assets to the FTX disaster and later sold the claim for pennies on the dollar, we are among the few closing shop with inception-to-date performance that continues to be positive. he posted, before hinting that other Galois-related projects were in the works.
Zhou distinguished himself in the crypto sphere when he repeatedly raised concerns about the stability of Terra’s algorithmic stablecoin, UST, weeks before it crashed. Galois Capital was also one of the main entities that asked miners to fork Ethereum when it transitioned to Proof of Stake to keep a Proof of Work chain going.
Disclosure: At the time of writing, the author of this article owned BTC, ETH, and various other crypto assets.
