The FTX crash led by Sam Bankman-Fried (SBF) still haunts the global cryptocurrency market. Most recently, one of the biggest victims of the FTX crash has decided to terminate its operations. Here are the details…
Cryptocurrency company ends operations
According to a report by the Financial Times, Galois Capital told its investors that it has terminated all trades in the market and opened all positions. The hedge fund was one of the largest crypto-focused pools last year. As we reported as Kriptokoin.com, he was managing nearly $200 million in assets. Kevin Zhou of Galois Capital reportedly stated that he did not believe the hedge fund could continue to operate, given the FTX effect. However, he expressed his regret for falling into this position.
It was previously reported that Galois Capital was caught off guard by the massive FTX collapse. About half of the assets received in exchange for hedge funds were stranded in the collapsing FTX. In November, reports reported that Galois Capital had $40 million left in FTX. At the time, Zhou told his investors it would take several years to get “some” of the funds back. “We will work tirelessly to maximize our chances of recovering stuck capital in any way,” he told investors at the time.
“From the Luna crash to the 3AC credit crunch to the FTX/Alameda failure, this whole tragedy has definitely pulled the crypto space back significantly,” Zhou said. However, even now I remain hopeful for the long-term future of crypto.” said. The report shows that nearly 1 million creditors were identified in SBF-led FTX bankruptcy proceedings. On the other hand, SBF is expected to stand trial in October on fraud charges.
Sold for compensation claims
The Financial Times reported on Monday that Galois sold his claim for 16 cents per dollar. According to the report, closing Galois will allow investors to get 90 percent of their money not lost in FTX. The remaining 10 percent will reportedly be held temporarily until negotiations with managers and supervisors are concluded. In November 2022, when the FTX crisis began to affect the market, Galois Capital announced that it was caught off guard amid the ongoing FTX crash. Half of the assets tracked by the hedge fund were trapped on the FTX crypto exchange. Ironically, it turns out that this wealth fund was also affected by the LUNA collapse.
Previous reports have mentioned that Kevin Zhou, co-founder of Galois, informed his investors that they could withdraw some money from the stock market. The manager added that about half of his capital is stuck in the stock market. Zhou apologized for putting investors in this situation. FTX valuation went bankrupt at $32 billion due to liquidity problem. Galois was managing assets worth more than $200 million.
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