Galois Capital, a cryptocurrency hedge fund, has shut down after suffering significant losses as a result of the FTX-Alameda collapse.
Most of the fund’s assets are frozen on the now-defunct FTX exchange.
Under financial pressure, the hedge fund decided to close down and aims to return outstanding funds to investors.
Cryptocurrency hedge fund Galois Capital has $100 million stuck on FTX exchange
Crypto hedge fund Galois Capital have most of its assets trapped on FTX exchange. The fund sent a letter to all their current investors to inform them of the fund’s finaincal difficulties and the “severity of the FTX situation.”
Co-founder Kevin Zhou:
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.
According to recent reports by the Financial Times, around $100 million worth of Galois Capital’s assets is stuck on FTX. Sam Bankman-Fried, the former CEO of FTX, will go on trial in the United States in October.
The fall of FTX-Alameda affected multiple cryptocurrency companies across the market. BlockFi filed for bankruptcy shortly after FTX went down, followed by Voyager Digital and Genesis Trading. Crypto platform Nexo was also affected by the collapse including the exchange Crypto.com which had direct exposure to FTX.