According to reports, crypto hedge fund Galois Capital is closing down and returning the remaining funds to investors. The fund had been hard hit by the collapse of crypto exchange FTX, where half of its assets were trapped. FTX filed for bankruptcy protection last November after failing to meet customer withdrawal requests. Galois Capital could have had around $100 million stuck on the exchange, and sold its bankruptcy claims for 16 cents on the dollar, according to the Financial Times.
Closure Confirmed by Galois Capital
Galois Capital co-founder Kevin Zhou wrote in documents seen by the Financial Times that it was no longer viable to continue running the fund, and that he was sorry about the situation. Galois Capital confirmed the shutdown on Twitter, saying that it had managed to maintain a positive performance since inception, despite the losses from the FTX disaster. The remaining funds will be returned to investors, with 90% of the money not trapped on FTX being released immediately. The remaining 10% will be temporarily held back until discussions with administrators and auditors are concluded.
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Hopeful for the Future of Crypto
Zhou acknowledged that the “tragic saga” of crypto’s setbacks, including the luna collapse and the Three Arrows Capital credit crisis, had set the industry back, but he remained hopeful for the future of cryptocurrency. Galois Capital echoed Zhou’s optimism, stating that the recent setbacks were temporary and would pass.
