Galois Capital To Shutter Crypto Fund
Co-founder Kevin Zhou’s letter to investors, Galois Capital announced its closure after losing a significant portion of its capital following the collapse of Sam Bankman-Fried’s FTX.
The business, according to Zhou, is no longer viable due to “the severity of the FTX situation.”
According to the letter, all trading has ceased and the fund’s holdings have been reversed, with Galois reportedly selling its bankruptcy claims for approximately $0.16 on the dollar.
Investors will receive 90% of available funds that were not trapped on the defunct crypto exchange, with the remaining 10% held by Galois until discussions with the administrators and auditor are completed.
Galois, a Texas-based crypto-focused quantitative fund with $200 million under management before the FTX collapse, said last November it had “significant exposure” to Bankman-Fried’s exchange, at the time the firm could have had around half of its funds trapped on the platform.
(With inputs from Shikha Singh)
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