Crypto hedge fund Galois Capital is reportedly shutting down and refunding cash to buyers after being caught within the high-profile implosion of FTX.
In response to the Monetary Occasions, Galois Capital halted all buying and selling actions and unwound all open positions because the hedge fund’s viability got here into query after about half its property acquired trapped on the FTX crypto trade.
The report says that Galois Capital had about $200 million in property below administration.
Galois Capital co-founder Kevin Zhou says that the “severity of the FTX state of affairs” had made it untenable to “proceed working the fund each financially and culturally”.
The hedge fund’s buyers will get 90% of the funds that aren’t caught on FTX whereas the rest shall be withheld briefly pending discussions with the auditor and directors, per the report.
In response to the Monetary Occasions, Galois Capital opted to promote its declare on FTX for roughly $0.16 on the greenback as an alternative of ready for a decision from the chapter courtroom. FTX filed for Chapter 11 chapter in November final yr.
Whereas expressing hope that crypto will survive, the hedge fund says that regardless of the massive losses triggered by the collapse of FTX, its returns for the reason that agency began are in constructive territory.
“Regardless of that, I’m proud to say that though we misplaced nearly half our property to the FTX catastrophe after which bought the declare for cents on the greenback, we’re among the many few who’re closing store with an inception-to-date efficiency which remains to be constructive…
Crypto will endure. These setbacks are short-term and can come to go.”
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