Crypto hedge fund Galois Capital is shutting down after shedding about half of its belongings to the FTX catastrophe. “Given the severity of the FTX scenario, we don’t assume it’s tenable to proceed working the fund each financially and culturally,” the fund’s co-founder informed buyers.
Crypto Hedge Fund Shuts Down Because of FTX Collapse
Crypto hedge fund Galois Capital is shutting down as practically half of its belongings are trapped on FTX, the collapsed cryptocurrency change which filed for chapter in November final yr. “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 informed buyers that every one buying and selling has been halted and all its positions unwound, based on paperwork seen by the Monetary Occasions. Galois co-founder Kevin Zhou wrote:
Given the severity of the FTX scenario, we don’t assume it’s tenable to proceed working the fund each financially and culturally … I’m terribly sorry in regards to the present scenario we discover ourselves in.
Purchasers of the hedge fund would obtain 90% of the cash not trapped on FTX, Galois mentioned, including that it’s briefly holding again the remaining 10% till discussions with the fund directors and auditor are finalized. Since informing buyers of its shutdown, Galois has offered the fund’s declare on FTX for about 16 cents on the greenback, the publication conveyed. Galois beforehand informed Bloomberg that it had as a lot as $45 million of belongings uncovered to FTX’s chapter.
Zhou is thought for warning in regards to the impending implosion of cryptocurrency terra (LUNA) and stablecoin Terrausd (UST) final yr. He additionally profited from shorting LUNA, now known as LUNA traditional (LUNC). Zhou opined:
This whole tragic saga ranging from the luna collapse to the 3AC credit score disaster to the FTX/Alameda failure has definitely set the crypto house again considerably.
Following information experiences of his hedge fund’s closure, Zhou took to Twitter to substantiate 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 offered the declare for cents on the greenback, we’re among the many few who’re closing store with an inception-to-date efficiency which continues to be constructive.
“Though that is the tip of an period for Galois, the work we now have accomplished 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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