It is yet another victim of the downfall of the FTX ecosystem. The Galois Capital hedge fund has announced that it is closing its doors, following the blocking of tens of millions of dollars.
The hedge fund Galois Capital stops following the FTX affair
Hedge fund Galois Capital co-founder Kevin Zhou confirmed his quit. Galois was managing at the height of FTX’s success over $200 million, but ended up with $100 million of blocked funds by the fall of Sam Bankman-Fried’s empire. According to documents seen by our colleagues at the Financial Times, it was these assets that directly led to the shutdown of the hedge fund:
” Given the severity of the situation regarding FTX, we do not believe it is possible to continue to operate the fund, both financially and culturally. »
These “cultural” issues are of course a modest way of indicating that cryptocurrencies are currently not in the odor of holiness… In particular hedge funds, seen by some as a telling example of the potential drifts of the ecosystem. The hedge fund had half of its assets on FTX, and was part of the long list of creditors that was released recently.
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Last November, Kevin Zhou explained that it would take several years to recover part of the funds, and thus return them to investors. For the moment, clients will receive 90% of funds that were not stored on FTX’s platform. For the rest, the co-founder of Galois Capital has a preference for a sale of the assets present on FTX, rather than a long and expensive lawsuit. But nothing is done yet, and the procedures will take time:
“I am once again absolutely sorry for the situation in which we currently find ourselves. »
The FTX Affair continues to create a domino effect, and the consequences will certainly not all be known for several months. The trial of Sam Bankman-Fried, the former CEO of the deposed exchange, will open next October. It already looks incredible, when we learned this weekend that one of the co-founders of the company will plead guilty.
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Source: Financial Times
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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