Crypto hedge fund Galois Capital has shut down after losing about half of its assets in the FTX disaster.” Given the severity of the FTX situation, we believe it is financially and culturally untenable to continue to operate the fund.” The fund’s co-founder told investors.
FTX Collapse Shuts Down Crypto Hedge Fund
Crypto hedge fund Galois Capital is shutting down because nearly half of its assets are trapped in FTX, the collapsed cryptocurrency exchange that filed for bankruptcy last November.” Galois Capital is a crypto hedge fund specializing in OTC trading and algorithmic market making.” Its website describes it as follows.
According to documents seen by the Financial Times, Galois Capital told investors that all trading has been suspended and all positions have been unwound. Galois co-founder Kevin Joux wrote: “Galois Capital has been suspended for the past two years.
Given the severity of the situation at FTX, I don’t think it is financially or culturally tenable for us to continue to operate the fund…. I am terribly sorry about the current situation we find ourselves in…
Hedge fund clients will receive 90% of the funds that were not caught by the FTX, Gallois said, adding that it is temporarily withholding the remaining 10% until discussions with the fund administrators and auditors are finalized. Since notifying investors of the suspension, Galois has sold the fund’s claims on FTX for about 16 cents on the dollar, the magazine said; Galois previously told Bloomberg that assets exposed to FTX’s bankruptcy amounted to $45 million.
Zhou is known for warning last year of the impending collapse of cryptocurrency Terra (LUNA) and stablecoin Terrausd (UST). He also profited from shorting LUNA, now called LUNA Classic (LUNC). Zhou opined that.
This whole tragic saga, starting with LUNA’s collapse, the 3AC credit crisis, and the FTX/Alameda failure, has certainly set the crypto space back significantly.
Nonetheless, we lost almost half of our assets in the FTX disaster and then sold claims for cents on the dollar, but we are proud to be one of the few who have closed store with a starting-day performance that is still positive.
“This is the end of an era for one of the Gallois companies, but the work we have done together over the past few years has not been in vain. I can say no more at this time,” concluded the Galois co-founder.
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