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.
👉 To learn more – Societe Generale, Banque Populaire, Netflix, Apple… The long list of FTX creditors has been published
The best way to secure your cryptocurrencies 🔒
🔥 The world leader in crypto security
Investors who find their beak in the water?
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.
👉 Listen to this article and all other crypto news on Spotify
🎁 Cryptoast Research Launch Offer
1st Newsletter Free with the code TOASTNL
Source: Financial Times
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.