{"id":17888,"date":"2023-02-21T00:03:07","date_gmt":"2023-02-21T00:03:07","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/crypto-hedge-fund-galois-capital-shuts-down-we-lost-almost-half-our-assets-to-ftx-disaster-featured-bitcoin-news\/"},"modified":"2023-02-21T00:03:07","modified_gmt":"2023-02-21T00:03:07","slug":"crypto-hedge-fund-galois-capital-shuts-down-we-lost-almost-half-our-assets-to-ftx-disaster-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/crypto-hedge-fund-galois-capital-shuts-down-we-lost-almost-half-our-assets-to-ftx-disaster-featured-bitcoin-news\/","title":{"rendered":"Crypto Hedge Fund Galois Capital Shuts Down \u2014 ‘We Lost Almost Half Our Assets to FTX Disaster’ \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Crypto hedge fund Galois Capital is shutting down after losing about half of its assets to the FTX disaster. \u201cGiven the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally,\u201d the fund\u2019s co-founder told investors.
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Crypto Hedge Fund Shuts Down Due to FTX Collapse<\/h2>\n

Crypto hedge fund Galois Capital is shutting down as nearly half<\/a> of its assets are trapped on FTX, the collapsed cryptocurrency exchange which filed for bankruptcy<\/a> in November last year. \u201cGalois Capital is a crypto hedge fund that specializes in over-the-counter trading and algorithmic market-making,\u201d its website describes.<\/p>\n

Galois Capital told investors that all trading has been halted and all its positions unwound, according to documents seen by the Financial Times. Galois co-founder Kevin Zhou wrote:<\/p>\n

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Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally \u2026 I\u2019m terribly sorry about the current situation we find ourselves in.<\/p>\n<\/blockquote>\n

Clients of the hedge fund would receive 90% of the money not trapped on FTX, Galois said, adding that it is temporarily holding back the remaining 10% until discussions with the fund administrators and auditor are finalized. Since informing investors of its shutdown, Galois has sold the fund\u2019s claim on FTX for approximately 16 cents on the dollar, the publication conveyed. Galois previously told Bloomberg that it had as much as $45 million of assets exposed to FTX\u2019s bankruptcy.<\/p>\n

Zhou is known for warning about the impending implosion of cryptocurrency terra (LUNA) and stablecoin Terrausd (UST) last year. He also profited from shorting LUNA, now called LUNA classic (LUNC). Zhou opined:<\/p>\n

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This entire tragic saga starting from the luna collapse to the 3AC credit crisis to the FTX\/Alameda failure has certainly set the crypto space back significantly.<\/p>\n<\/blockquote>\n

Following news reports of his hedge fund\u2019s closure, Zhou took to Twitter to confirm the shutdown of Galois\u2019 flagship fund. He tweeted Monday:<\/p>\n

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In spite of that, 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.<\/p>\n<\/blockquote>\n

\u201cAlthough this is the end of an era for Galois, the work we have done together for the past few years has not been in vain. I can\u2019t say more than this for now,\u201d the Galois co-founder concluded.<\/p>\n

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crypto hedge fund<\/a>, crypto hedge fund shuts down FTX<\/a>, ftx<\/a>, FTX collapse<\/a>, FTX contagion<\/a>, Galois<\/a>, Galois Capital<\/a>, Galois closing down<\/a>, Galois FTX<\/a>, Galois hedge fund<\/a>, Galois shutting down<\/a><\/div>\n<\/div>\n

What do you think about crypto hedge fund Galois Capital shutting down due to its assets being trapped on the collapsed crypto exchange FTX? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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