Galois Hedge Fund Shuts Operations After Losing to FTX Collapse: Report

Galois Capital is another hedge fund that has become one of the well-known casualties of the FTX demise. According to the Financial Times, it has chosen to shut down and repay investor funds.

Last year, Galois Capital managed about $200 million in assets. According to documents obtained by FT, it informed investors that it had stopped all trading. Moreover, the platform reportedly unwound all its positions because it was no longer sustainable. However, an official announcement is awaited.

Galois Reportedly Lost $40M in FTX

BeInCrypto noted last November that Galois had around $40 million locked in FTX. Even though it took out about half of its assets, this amount wasn’t withdrawn before the crisis.

Galois stated in the letter that FT-cited clients would receive 90% of the money not stranded on FTX upon the liquidation. But, up until the conclusion of negotiations with the administrators and auditor, the final 10% would be temporarily withheld, the report noted.

LUNA Crisis Domino Effect

Galois co-founder Kevin Zhou is quoted stating, “Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally…Once again I’m terribly sorry about the current situation we find ourselves in.”

He claimed bankruptcy cases could extend for a decade or longer, and distressed buyers of such claims “have more expertise than us in pursuing claims in bankruptcy court.” It is reported that for about 16 cents on the dollar, the platform has sold its claim.

Three Arrows Capital was one of the first companies to fail out of a long list of collapses last year. Three Arrows was destroyed by the demise of the cryptocurrencies Terra Luna and TerraUSD in May 2022. While 3AC owes about $3 billion to its creditors, FTX was another nail in the coffin.

According to Zhou, the failure of FTX/Alameda and the credit problem at 3AC have undoubtedly caused the crypto space to regress greatly.

“However, I, even now, remain hopeful for crypto’s long-term future,” he added.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Bookmark (0)

Related Posts

Dogecoin (DOGE) Signals Imminent Price Resurgence, Is It Time to Buy the Dip?

Dogecoin has made a 17% recovery after testing November 2022 lows.
DOGE social sentiment is currently pessimistic. 
DOGE could soon flip $0.10

Bookmark (0)

Fed Increases Interest Rates by 25 Basis Points, Suggests Rate Hike Pause Likely

U.S. Federal Reserve Chair Jerome Powell said that the bank had decided to increase interest rates by another 0.25%.
Powell said the collapse of several banks has driven a more cautious approach, with a rate hike pause imminent.
U.S. Treasury Secretary Janet Yellen’s speech after the Fed announcement saw Bitcoin fall below $27,500.

Bookmark (0)

Shiba Inu (SHIB) Long-Term Holders Are Selling, Is a Further Price Downswing Expected? 

SHIB moved sideways in reference to its price a week ago. 
Shiba Inu long-term holders are selling.
Shiba Inu network growth is in a steep decline.

Bookmark (0)

Why is Cardano price up today?

Cardano whales are largely behind ADA’s price rally in the last week, helped by Bitcoin’s multimonth highs amid the banking crisis and Fed pivot hopes.

Bookmark (0)

Breaking SEC Sues Justin Sun for Unregistered Securities Offerings

The U.S. SEC has sued Justin Sun for offering BTT and TRX as unregistered securities.
Celebrities Austin Mahone and DeAndre Way have also been sued for promoting the tokens with disclosure.
The SEC seeks to prevent Sun from engaging in future crypto asset offerings.

Bookmark (0)

Price analysis 3/22: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, SHIB

Technical charts are beginning to suggest that BTC is at the end of its bear market cycle, and traders believe this could yield positive results for most altcoins.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *