Galois Capital Closes Operations and Will Return Assets to Investors After Incurring Major Losses in the FTX Exchange Collapse
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Galois Capital, a hedge fund impacted by the collapse of FTX, has made the difficult decision to close its doors and return its remaining assets to investors.
The hedge fund acknowledged on November 12, 2022, in a statement from its official Twitter account, that it had significant exposure to the FTX exchange.
As reported by the Financial Times, the fund froze all trading and rolled back its positions after significant exposure to the bankrupt exchange.
Galois Capital’s co-founder, Kevin Zhou, acknowledged the severity of the situation, stating that the fund could not justify continuing operations. Investors will receive 90% of the available funds, with the remaining 10% being held temporarily by the company until discussions are finalized.
Zhou also indicated that the hedge fund may look to sell its claims rather than wait for a lengthy bankruptcy process. The freeze of millions of funds in the FTX bankruptcy, including those of other firms like New Huo Technology and Nestcoin, has resulted in at least $50 million in funds being trapped in the exchange.
In a similar move, the largest Mt. Gox creditor has opted for an early payout rather than waiting for a protracted legal process. Mt. Gox Investment Fund has elected to be paid in September rather than wait longer for asset recovery. These instances highlight the challenges and risks that can arise in the crypto industry, as well as the importance of risk management and contingency planning.
Also read: Litecoin Whales Join the Party: Anticipating a Rally in LTC’s Value?
