Crypto Hedge Fund, Galois Capital has become the last victim of FTX collapse after losing more than $40 million. The company’s co-founder said the fund has halted all trading as it is no longer viable post-FTX while it returned the remaining assets to investors.
In November 2022, it was reported that Galois Capital had $40 million stuck at FTX. At the time, the company told its investors that it would take a few years to recover “some percentage” of the funds.
Investors King could recall that the FTX collapse affected a number of companies, both big and small. The collapse brought about the importance of regulating cryptocurrency.
The collapse of FTX, caused by a liquidity crisis of the company’s token, FTT, served as the impetus for its bankruptcy. Prior to its collapse, FTX was the third-largest cryptocurrency exchange by volume and had over one million users.
In a letter sent to Investors, Co-Founder of Galois Capital, Kevin Zhou noted that all trading has been halted while apologising to investors. Zouh further pointed out the severity of the situation.
The hedge fund nonetheless disclosed that investors will receive 90% of the available fund which is not trapped in the FTX exchange while the remaining 10% will be kept by the company temporarily until discussions are finalised.
In addition, Zhou hired that he intend to sell the hedge fund claims instead of waiting on a lengthy bankruptcy claim which could take a decade. According to him, buyers of these claims are more capable of pursuing claims in bankruptcy court.
“I am proud to say that although we lost almost half our assets to the FTX disaster and then sold the claim for cents on the dollar, we are among the few who are closing shop with an inception-to-date performance which is still positive,” Zhou, wrote on Monday.
