Galois Capital Closes Its Doors After FTX Failure Swallows Half Its Assets

Galois Capital, a hedge fund, suffered losses as a result of the failure of FTX; as a result, the firm has opted to shut down and refund its remaining assets to investors as the failing exchange swallowed up half of its assets.

“We will repay investors 90% of the available funds, holding the remaining 10% in reserve,” Galois Capital said. Hedge fund confirmed significant FTX exchange investment via Nov 12, 2022, official Twitter account statement.

In a letter to investors, the fund announced that it had suspended all trading and reverted its positions, as reported by the Financial Times. Kevin Zhou, the co-founder of Galois Capital, expressed regret to their investors and acknowledged that the FTX situation’s gravity left them with no choice but to cease operations.

Hedge fund to distribute 90% of funds accessible, except locked in FTX, to investors,” announced. The company will temporarily hold the remaining 10% until talks are concluded.

Millions Of Company Funds Frozen Due To FTX Bankruptcy

Zhou chose to sell the hedge fund’s claims over lengthy bankruptcy, which could take a decade. Galois Capital’s co-founder noted that purchasers of these claims possess a greater capacity to pursue claims in bankruptcy courts.

The FTX bankruptcy froze millions of company funds, including those of New Huo Technology and Nestcoin. Galois Capital, one of the parties impacted by the FTX fiasco, has at least $50 million in cash-stranded exchange.

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Similarly to Galois Capital’s strategy, the most substantial creditor of Mt. Gox has opted for an expedited payout rather than enduring a lengthy legal procedure that may last for years. On Feb 17, the Mt. Gox Investment Fund announced its decision to receive its assets in September instead of waiting any further.

This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.

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