Galois Capital is another hedge fund that has become one of the well-known casualties of the FTX demise. According to the Financial Times, it has chosen to shut down and repay investor funds.
Last year, Galois Capital managed about $200 million in assets. According to documents obtained by FT, it informed investors that it had stopped all trading. Moreover, the platform reportedly unwound all its positions because it was no longer sustainable. However, an official announcement is awaited.
Galois Reportedly Lost $40M in FTX
BeInCrypto noted last November that Galois had around $40 million locked in FTX. Even though it took out about half of its assets, this amount wasn’t withdrawn before the crisis.
Galois stated in the letter that FT-cited clients would receive 90% of the money not stranded on FTX upon the liquidation. But, up until the conclusion of negotiations with the administrators and auditor, the final 10% would be temporarily withheld, the report noted.
LUNA Crisis Domino Effect
Galois co-founder Kevin Zhou is quoted stating, “Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally…Once again I’m terribly sorry about the current situation we find ourselves in.”
He claimed bankruptcy cases could extend for a decade or longer, and distressed buyers of such claims “have more expertise than us in pursuing claims in bankruptcy court.” It is reported that for about 16 cents on the dollar, the platform has sold its claim.
Three Arrows Capital was one of the first companies to fail out of a long list of collapses last year. Three Arrows was destroyed by the demise of the cryptocurrencies Terra Luna and TerraUSD in May 2022. While 3AC owes about $3 billion to its creditors, FTX was another nail in the coffin.
According to Zhou, the failure of FTX/Alameda and the credit problem at 3AC have undoubtedly caused the crypto space to regress greatly.
“However, I, even now, remain hopeful for crypto’s long-term future,” he added.
Trusted
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
