Because of their exposure to the failing cryptocurrency exchange FTX, the over-the-counter trading specialist crypto hedge fund known as “Galois Capital” has decided to close its doors. Over half of Galois Capital’s assets were wiped out when the FTX exchange crashed.
The hedge fund managed by Galois Capital was unable to recoup its previous losses. After managing almost $200 million in assets, the crypto-focused quantitative fund allegedly lost $40 million in FTX. This loss came after the fund had previously managed about $200 million in assets.
However, the crypto firm already told its clients that it had halted every activity including trading. Following the report from Financial Times (FT), the investment firm claimed that 90% of assets were not locked in FTX so they will be refunded to clients soon.
The remaining ten percent will be held by the hedge fund until all discussions with investigators, administrators, and other parties have been concluded.
Once the FT piece was published, Galois Capital sent out the following tweet: “Thank you all for the kind words. Yes, it is true that our flagship fund is shutting down.”
According to the information provided by the Financial times, Galois was finally able to sell off all of its liquidation assets for a price of 16 cents on the dollar.
Compiled by Coinbold