Crypto-focused Hedge Fund Galois Capital Shutting Down with Over $40M Loss to FTX
Galois Capital co-founder indicated the lead crypto-oriented hedge fund was quitting operations following the loss of substantial capital in the collapsed FTX empire. The executive confirmed Galois terminated all trading activities after discovering that the operations were unviable post-FTX collapse.
Galois Capital Admits Operating Post-FTX Collapse Unviable
The firm conveyed the news of ending operations via a February 20 tweet admitting the exposure to FTX strangled a significant amount of capital from the hedge fund. The firm expressed gratitude for consolatory messages since Financial Times reported the fund’s imminent closure.
The move by Galois Capital confirms the late November forecasts that it suffered significant exposure. In particular, the firm admitted over $40 million trapped in the collapsed Sam Bankman-Fried empire.
Full Recovery of Digital Wealth Trapped in FTX
Galois Capital co-founder Kevin Zhou informed investors recovery of trapped wealth would take several years. He ruled out full recovery to instead admit that Galois would regain control of only a portion of the funds.
Zhou assured the investors of optimizing the chance of recovering the trapped capital. The founder was noncommittal on earlier claims by the financial times, indicating that Galois disposed of its bankruptcy claims for $0.16 per dollar trapped.
The report echoes the January disclosure by CoinDesk that FTX claims would cost $0.13 to the dollar claim.
Galois Founder’s Optimism of Crypto Recovery
Zhou laments the loss of invested capital following the tragic saga experienced in 2022. In particular, the Galois founder cited the Luna collapse as triggering a series of downfalls for Three Arrows Capital and calamitous FTX/Alameda failure as derailing the crypto sector.
Zhou portrayed optimism that crypto would regain in the future. Also, he confirmed that Galois would return the remaining money to the investors.
FTX Japan Restores Withdrawal Services
Elsewhere, FTX Japan restored withdrawal services on February 21. Users can withdraw their trapped wealth as earlier promised in December 2022. The decision echoes the positive update portrayed by the Japanese exchange since suspending operations three days before the FTX Group sought bankruptcy protection on November 11.
The announcement conveyed by FTX Japan on February 20 alerted customers to the restart of withdrawal services. From noon on February 21, customers started to withdraw their trapped funds for fiat and cryptos.
Ring-Fencing FTX Japan Assets
The resumption of withdrawal services arises from the move by the Japanese regulatory authority to ring-fence the assets.
The recent statement by FTX Japan admitted receipt of massive withdrawal requests. Consequently, it alerted the customers the withdrawal would take longer to complete. The firm promised to inform users of the date of restoring other services.
Contrary to the shutdown move by Galois, FTX Europe and FT Japan is targeted for early sale as the parent entity’s estate desires to recoup funds.
Editorial credit: Rcc_Btn / Shutterstock.com
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at [email protected] if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. CreditInsightHubs is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
