Galois Capital has moved to close down its hedge fund operations following a $40 million loss ensuing from the FTX collapse, based on the Monetary Occasions (FT).
The U.S.-based hedge fund managed about $200 million in belongings on behalf of its purchasers. Following the FTX collapse, Galois Capital co-founder Kevin Zhou disclosed that the fund had as much as $40 million trapped on FTX.
Nevertheless, in a letter made out there to FT, Zhou stated:
“Given the severity of the FTX state of affairs, we don’t suppose it’s tenable to proceed working the fund each financially and culturally.”
Zhou added that the hedge fund would promote its declare on FTX for the reason that chapter proceedings can last as long as a decade.
Following his announcement, Galois Capital has reportedly offered its claims for roughly 16 cents on the greenback.
Moreover, Galois Capital purchasers will obtain as much as 90% of the funds not trapped on FTX, whereas the remaining 10% will likely be withheld till the hedge fund’s auditing course of is finalized.
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