Galois Capital Closes Because Of 40 Million Dollar In Assets Stuck On FTX

Key Points:

• After the collapse of FTX, Galois Capital announced that it could no longer maintain trading and that the entire fund’s positions would be closed to refund investors.
• Founder Kevin Zhou claims that the amount of money held on FTX is only $40 million, but the actual number could be as high as $100 million.
• The client will receive about 90% of the funds not stuck on the FTX. The remaining 10% will be kept until the procedures with the regulator and audit are completed.

Galois Capital, one of the hedge funds that suffered the most after the collapse of FTX, has decided to cease operations and will return the remaining funds to investors when it sees that the probability of recovering funds soon is not high.

By 2022, Galois Capital is said to have $200 million under management and is one of the largest quantitative trading institutions in the cryptocurrency industry. However, according to the Financial Times, Galois Capital stated in the letter to investors that it is no longer possible to maintain trading activities and that all fund positions will be closed to refund investors.

“This entire tragic saga starting from the luna collapse to the 3AC [Three Arrows Capital] credit crisis to the FTX/Alameda failure, has certainly set the crypto space back significantly (…). However, I, even now, remain hopeful for crypto’s long-term future.”

Founder Kevin Zhou wrote.

Information that Galois was stuck with assets on FTX was leaked in November 2022, just a few days after the exchange collapsed. While the Financial Times revealed that Galois’s losses amounted to $100 million, Zhou claimed that his holdings on FTX were only $40 million.

Galois Capital said that clients would get about 90% of their funds not stuck on FTX. The remaining 10% will be kept temporarily until the procedures with the regulatory body and audit are completed.

Mr. Zhou also said in the letter that the fund would sell “claims of assets” related to the FTX case. The founder explains this move because FTX’s bankruptcy process can take a decade, with many complicated legal procedures. As a result, the fund decided to resell these papers for 16 cents per USD to be handled by more professional organizations.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News