Galois Capital has moved to shut down its hedge fund business following a $40 million loss from the FTX collapse, according to the Financial Times (FT).
The US-based hedge fund has managed approximately $200 million in assets on behalf of its clients. After the collapse of FTX, Galois Capital co-founder Kevin Zhou revealed that the fund had locked up to $40 million in his FTX.
However, in a letter published by the FT, Zhou said:
“Given the seriousness of the FTX situation, we believe it will be difficult, both financially and culturally, to continue to operate the fund.”
Zhou added that the hedge fund will sell FTX’s bonds as bankruptcy proceedings could last up to 10 years.
Following his announcement, Galois Capital reportedly sold its bonds for about 16 cents on the dollar.
In addition, Galois Capital clients will receive up to 90% of their untrapped funds in FTX, with the remaining 10% withheld until the hedge fund audit process is complete.
The post Galois Capital shut down in the aftermath of the FTX collapse first appeared on CryptoSlate.
