Crypto Hedge Fund Galois Capital Shuts Down — ‘We Lost Almost Half Our Assets to FTX Disaster’

Crypto hedge money Galois Capital is shutting down aft losing astir fractional of its assets to the FTX disaster. “Given the severity of the FTX situation, we bash not deliberation it is tenable to proceed operating the money some financially and culturally,” the fund’s co-founder told investors.

Crypto Hedge Fund Shuts Down Due to FTX Collapse

Crypto hedge money Galois Capital is shutting down arsenic nearly half of its assets are trapped connected FTX, the collapsed cryptocurrency speech which filed for bankruptcy successful November past year. “Galois Capital is simply a crypto hedge money that specializes successful over-the-counter trading and algorithmic market-making,” its website describes.

Galois Capital told investors that each trading has been halted and each its positions unwound, according to documents seen by the Financial Times. Galois co-founder Kevin Zhou wrote:

Given the severity of the FTX situation, we bash not deliberation it is tenable to proceed operating the money some financially and culturally … I’m terribly atrocious astir the existent concern we find ourselves in.

Clients of the hedge money would person 90% of the wealth not trapped connected FTX, Galois said, adding that it is temporarily holding backmost the remaining 10% until discussions with the money administrators and auditor are finalized. Since informing investors of its shutdown, Galois has sold the fund’s assertion connected FTX for astir 16 cents connected the dollar, the work conveyed. Galois antecedently told Bloomberg that it had arsenic overmuch arsenic $45 cardinal of assets exposed to FTX’s bankruptcy.

Zhou is known for informing astir the impending implosion of cryptocurrency terra (LUNA) and stablecoin Terrausd (UST) past year. He besides profited from shorting LUNA, present called LUNA classical (LUNC). Zhou opined:

This full tragic saga starting from the luna illness to the 3AC recognition situation to the FTX/Alameda nonaccomplishment has surely acceptable the crypto abstraction backmost significantly.

Following quality reports of his hedge fund’s closure, Zhou took to Twitter to corroborate the shutdown of Galois’ flagship fund. He tweeted Monday:

In spite of that, I americium arrogant to accidental that though we mislaid astir fractional our assets to the FTX catastrophe and past sold the assertion for cents connected the dollar, we are among the fewer who are closing store with an inception-to-date show which is inactive positive.

“Although this is the extremity of an epoch for Galois, the enactment we person done unneurotic for the past fewer years has not been successful vain. I can’t accidental much than this for now,” the Galois co-founder concluded.

What bash you deliberation astir crypto hedge money Galois Capital shutting down owed to its assets being trapped connected the collapsed crypto speech FTX? Let america cognize successful the comments conception below.

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