Crypto Hedge Fund Galois Closes After Losing $40 Million on FTX: FT

According to a report from the Financial Times, one of the world’s largest crypto-focused quant funds has called it quits after losing a significant portion of its capital in the collapse of FTX.

“Given the severity of the FTX situation, we do not think it is sustainable to continue to exploit the fund both financially and culturally,” Galois Capital co-founder Kevin Zhou wrote in a note seen by the FT. “Once again I am terribly sorry for the current situation we are in.”

In November, CoinDesk reported that Galois Capital had held onto $40 million in FTX. At the time, Zhou told his investors it would take a few years to recover “a certain percentage” of the money.

“We will work tirelessly to maximize our chances of recovering tied up capital by any means necessary,” he told investors at the time.

The FT reported that Galois sold his bankruptcy claims for 16 cents on the dollar. In January, CoinDesk reported that FTX claims were trading around 13 cents per dollar on bankruptcy marketplace Xclaim.

“This whole tragic saga from the moon collapse to the 3AC [Three Arrows Capital] The credit crunch due to the failure of FTX/Alameda has certainly caused the crypto space to shrink significantly,” Zhou wrote in a note seen by FT. “However, even now, I remain hopeful for the long-term future of crypto.”






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