Galois Capital Shuts Down Over FTX Loss, Returns Funds
- The crypto hedge fund Galois Capital will shut down its operation after losing almost half of its funds in the FTX collapse.
- Galois Capital has around $50 million stuck on FTX but will refund 90% of the fund not on the exchange to its customers.
- Despite being forced to shut down, Galois Capital still holds out hope for the success of the crypto industry.
Galois Capital, a crypto hedge fund specializing in over-the-counter (OTC) trading and algorithmic market-making (AMM), has announced the shutdown of activity after “losing almost half” of the fund’s money when FTX collapsed.
Galois Capital Shuts Down Due to FTX Contagion
In November 2022, after a surge of customer withdrawals, FTX CEO Sam Bankman-Fried admitted that the exchange didn’t have sufficient assets to meet the demand, leading to the imminent collapse of the crypto exchange.
On the same day of the FTX collapse, Galois Capital announced that it had “significant funds stuck on FTX.” Three months after the implosion of FTX, the crypto hedge fund is finally shutting down its operations with at least $50 million stuck on FTX.
Kevin Zhou, the founder of Galois Capital, confirmed the reports first released by the FT. The official Galois Capital Twitter handle shared:
Galois to Return 90% of Available Funds
In a separate letter to the media house, Kevin Zhou explains that “given the severity of the FTX situation, we do not think it is tenable to continue operating the fund financially and culturally.”
Before fully shutting down, Galois Capital will return up to 90% of the funds not trapped on FTX to its customers and will hold onto the remaining 10% until the company’s auditing process is finalized. The hedge fund reportedly sold its claims for roughly 16 cents on the dollar.
Hope for the Crypto Industry
Although several billions of dollars and crypto companies have met their demise due to the FTX collapse, Galois remains bullish about the future of the crypto industry.’ In its final message, Galois writes, “Crypto will endure. These setbacks are temporary and will come to pass. Stay strong and good luck.”
There could be more from Zhou in the future, as he says the work done by the team over the years has not been in vain. Although further information isn’t provided, he has asked his followers to “stay tuned.”
On the Flipside
- Despite being forced to shut down due to its FTX exposure, Galois Capital is one of a handful of crypto companies with an inception-to-date performance that is still positive.
Why You Should Care
Galois Capital joins Genesis Trading, Galaxy Digital, Coinshares, BlockFi, Pantera, Celsius Network, and Voyager Digital, among others, as companies affected by FTX.
Find more details about the FTX contagion below:
FTX Contagion In Sports: Teams And Athletes Rush To Terminate FTX Deals
Read the latest in the FTX case below:
FTX Lawsuits Pile Up: Silvergate Bank, Sequoia Capital, Paradigm, Face Litigation
Read more: https://dailycoin.com/galois-capital-shuts-down-over-ftx-loss-returns-funds/
Text source: DailyCoin.com
