Galois Capital Closes Shop After Suffering FTX Collapse Losses

• Galois Capital, a crypto hedge fund, is shutting down after suffering losses in FTX’s collapse last year.
• The remaining assets will be returned to investors and the 10% remaining with the fund will be used to settle discussions with auditors and other stakeholders.
• Galois was one of the most high-profile victims of Sam Bankman-Fried’s failed crypto empire.

Galois Capital Shutting Down

Crypto hedge fund Galois Capital has announced it will be shutting down after experiencing significant losses stemming from FTX’s collapse last year. The fund had been operating in the crypto space for six years before deciding to close its doors due to its financial situation.

Losses Experienced by Galois

Galois Capital was identified as one of the biggest victims of Sam Bankman-Fried’s failed crypto empire. The popular hedge fund went from managing nearly $200 million in assets to losing around $40 million in FTX, although some funds were able to be recovered from the bankrupt exchange.

Returning Assets

The firm plans on returning 90% of its remaining funds to its investors, while 10% will remain with Galois until a settlement is reached with auditors and other stakeholders. Kevin Zhou, co-founder of the hedge fund, stated that they would not pursue claims in bankruptcy court but instead sell them off for approximately 16 cents on the dollar.

Reasons for Closing Funds

Zhou also stated that given the severity of their situation financially and culturally, it was not tenable to keep running their operations any further. He added how sorry he felt about what happened and how difficult it must have been for all involved parties.

Conclusion

Overall, Galois Capital has decided to shut down after six years due to major losses stemming from FTX’s collapse last year. The remaining funds will be distributed back out to investors while talks are finalized between Auditors and other stakeholders for the remaining 10%.