• Crypto hedge fund Galois Capital reportedly shut down due to the collapse of FTX.
• Approximately $100 million of the fund’s capital was stuck on the bankrupt exchange.
• Clients will receive 90% of their money not stuck on the platform, with the remaining 10% to be distributed after discussions between administrators and auditing firms.

Another Victim of FTX: Crypto Hedge Fund Galois Closes Down

Crypto hedge fund Galois Capital – based in San Francisco – has reportedly shut down as a consequence of the collapse of FTX. Half of its assets were stuck on the trading venue, leaving around $100 million trapped in the bankrupt exchange.

Returns for Investors

Galois Capital has assured its investors that they will receive 90% of their money not stuck on the platform, while the remaining 10% will be distributed after necessary discussions by administrators and auditing firms are finalized.

Co-Founder’s Statement

Co-Founder Kevin Zhou stated that “given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally”. He added that closing down is a better option than filing for bankruptcy protection as this would lead to delayed refunds for users.

2022: A Devastating Year

Zhou also commented that 2022 has been devastating for cryptocurrency markets in general, noting that “the industry needs more robust risk management procedures and greater transparency from exchanges in order for us all to move forward together”.

Conclusion

In conclusion, crypto hedge fund Galois Capital has closed down due to its exposure to FTX’s fallout, with approximately $100 million stuck on the bankrupt exchange. The company promises its clients that they will receive 90% of their investment once administrators and auditing firms finalize necessary discussions regarding refunds.