Galois Capital shuts shop due to the FTX collapse

Galois Capital, which happens to be a crypto hedge fund, has been compelled to finally shut shop, following the incurring of a substantial amount of loss due to the FTX collapse. The money that happens to be left over with the company, as per plans, is going to be duly distributed amongst its investors. 

The entity happened to have been actively involved in the crypto arena for the last six years. It so happens that the firm has turned out to be one of the prime sufferers caused by the downfall of the FTX

In the meantime, it happens to be the aim and intention of the company to stop all activities related to trading. It has also issued letters to all of its connected clients that 90% of the money that was not affected by the FTX would be handed back to the investors. Where the balance amount of 10% is concerned, the company will be holding on to it until such time a proper decision is taken after due consultations with stakeholders, administrators, and also auditors. It is only after completing the process will the future course of action be chalked out. 

According to the Co-Founder, Kevin Zhou, they have made up their minds to sell the claims for around 16 cents on the dollar rather than following the path of a legal procedure and having to settle claims in a bankruptcy court.

In their opinion, this would be much more convenient for all concerned. It indeed happens to be very unfortunate for the company, which started off as the biggest crypto-oriented quantitative fund, in charge of almost $200 million, and ended up with huge losses amounting to $40 million in terms of FTX. Though it managed to regain a certain amount of its funds from the now-defunct exchange, it was not able to take possession of half of the assets.  

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

Related Articles

Back to top button
Bitcoin (BTC) $ 65,139.45
Ethereum (ETH) $ 3,539.53
Tether (USDT) $ 0.999547
BNB (BNB) $ 597.33
Solana (SOL) $ 137.39
XRP (XRP) $ 0.492858
Dogecoin (DOGE) $ 0.123768
Cardano (ADA) $ 0.386619