Coin Edition -
- Galois Capital has decided to stop trading after being victimized by FTX’s fall.
- A major share of the fund was trapped at FTX during its collapse.
- Kevin Zhou claimed that 90% of the funds would be returned to the investors.
According to the recent report, Galois Capital, the leading crypto trading fund, has decided to cease the platform’s further establishment, being one of the seriously victimized platforms under the bankruptcy of the once-eminent crypto exchange FTX. While A major share of the company’s holdings was lost in the FTX collapse, the remaining assets would be returned to the investors once the company is closed.
Colin Wu, the Chinese reporter, tweeted on his Twitter account Wu Blockchain that the hedge fund has decided to “stop all trading and close all positions.”
According to FT, hedge fund Galois Capital decided to stop all trading and close all positions. Galois Capital is famous for shorting LUNA, but nearly half of its assets are stranded in FTX and cannot be raised.https://t.co/Zk9pObkL0y— Wu Blockchain (@WuBlockchain) February 20, 2023
Previously, in November 2022, Galois Capital revealed that half of its fund, around $40 million, was stuck in FTX when it collapsed. Kevin Zhou, the co-founder of the company, in a letter, said, “we will work tirelessly to maximize our chances of recovering stuck capital by any means.”
Currently, addressing the unfavorable conditions of the company, Zhou conveyed apologies, stating:
Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally. Once again I’m terribly sorry about the current situation we find ourselves in.
Further, in the letter, Zhou mentioned that 90% of the remaining money, which is not trapped in FTX would soon reach Galois’ customers, who had been affected by the FTX collapse. Meanwhile, 10% of the funds would be held back temporarily to finalize after the discussions with the administrators and auditor.
The co-founder also stated that it is more convenient to sell the fund rather than being engaged in long legal procedures, which could be prolonged for even a decade.
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