• 16 July, 2024
Crypto Exchanges News

Galois Capital Calls it Quits as Assets Stuck in FTX

Citing unviability, Galois Capital’s Kevin Zhou is reportedly ending the flagship fund as half of the assets are stuck in the bankrupt FTX exchange. Galois is set to reportedly return the money that remains to its investors.

Zhou maintains that despite having “sold the claim for cents on the dollar” due to troubled assets,

we are among the few who are closing shop with an inception-to-date performance which is still positive.

Confirming the closure reports, Galois Capital tweeted:

A prominent cryptocurrency quantitative fund, Galois Capital reportedly had over $200 million in assets. Galois Capital has reportedly communicated the trading halt to its investors. Kevin Zhou says,

Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally.

The claim is reported to have been sold for 16 cents on the dollar by Galois Capital. Nearly 1 million creditors have reportedly been recorded in FTX’s Delaware bankruptcy filing. Now defunct FTX’s Sam Bankman-Fried’s (pleading not guilty) trial is due in October for fraud charges.

Per the official Galois letter, at the closure of the fund, clients would get 90% of the money not stuck on FTX. The remaining 10% would be held back for a while until the culmination of the discussions with the administrators and auditor.

Zhou writes, this entire tragic saga starting from the luna collapse to the 3AC [Three Arrows Capital] credit crisis to the FTX/Alameda failure has certainly set the crypto space back significantly. However, I, even now, remain hopeful for crypto’s long-term future.

Asking the Cryptoverse to stay-tuned, Zhou also maintains that while Galois is at its end, the work done in the recent years will “not go in vain.”

He wrote, Crypto will endure.  These setbacks are temporary and will come to pass. Stay strong and good luck.

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