Galois Capital lost almost half of its funds in the FTX debacle.
- Crypto hedge fund Galois Capital is closing down.
- The firm claims that almost half of its assets were still on FTX when the exchange collapsed.
- It has already sold its FTX claims for 16 cents on the dollar.
Crypto hedge fund Galois Capital is winding down its operations after having lost 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 be shutting down its services due to losses incurred in the FTX collapse. Despite managing to pull some funds, the firm still had almost half of its assets stuck on the exchange when it completely froze withdrawals.
“Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally,” co-founder Kevin Zhou told investors. “Once again I’m terribly sorry about the current situation we find ourselves in.”
According to the Financial Times, Galois managed around $200 million in assets in 2022. The hedge fund indicated that clients would receive 90% of the funds that were not locked on FTX, while the remaining 10% would be temporarily held back until discussions with auditors were finalized.
Galois sold its FTX claims for approximately 16 cents on the dollar, with Zhou explaining to investors he preferred selling the claims early instead of going through a multi-year bankruptcy process.
Zhou took to Twitter to confirm the report. “I am proud to say that although we lost almost half our assets to the FTX disaster and then sold the claim for cents on the dollar, we are among the few who are closing shop with an inception-to-date performance which is still positive,” he posted, before hinting that other Galois-related projects were in the works.
Zhou distinguished himself in the crypto sphere when he repeatedly voiced his concerns about the stability of Terra’s algorithmic stablecoin UST weeks before it collapsed. Galois Capital was also one of the main entities calling on miners to fork Ethereum when it transitioned to Proof-of-Stake in order to keep a Proof-of-Work chain going.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other crypto assets.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
Bankman-Fried Wanted Crypto Prices to Go Up to Plug FTX Hole
Members of Sam Bankman-Fried’s “inner circle”—quite possibly FTX co-founder Gary Wang and FTX chief of engineering Nishad Singh—issued multiple warnings to Sam Bankman-Fried about Alameda’s negative balance. If Only Prices…
New FTX Management Has Located Over $5B in Liquid Assets
Under John Ray, FTX has located over $5 billion of company-related liquid assets—including cash, liquid cryptocurrencies, and liquid stocks. Locating the Funds The new management team at FTX has been…
FTX Fraud: More Bombshell Revelations in New Bankruptcy Filing
Lies, embezzlement, incompetence, and several instances of fraud are some of the subjects discussed in the new filing. “A Complete Failure of Corporate Controls” Things are going from bad to…