• Crypto hedge fund Galois Capital reportedly shut down due to the collapse of FTX.
• Half of its assets were stuck on the trading venue, and it will return its remaining funds to investors.
• Co-Founder Kevin Zhou stated that filing for bankruptcy protection would lead to delayed refunds.
Crypto Hedge Fund Closes Down
Crypto hedge fund Galois Capital is reportedly the latest entity to terminate operations due to FTX’s fallout. The San Francisco-based hedge fund managed approximately $200 million in assets and has decided to cease all trading services and close down after half of its capital was trapped in the bankrupt exchange.
Returning Funds To Investors
Galois Capital assured that clients will receive 90% of their money not stuck on the platform, with the remaining 10% being distributed after administrators and auditing firms finalize necessary discussions on the matter. Co-Founder Kevin Zhou stated that filing for bankruptcy protection would lead to delayed refunds and therefore believes it is better to close down rather than pursue this course of action.
Devastating Year For Cryptocurrency
Zhou concluded that 2022 had been a devastating year for the entire cryptocurrency industry, with numerous scams, frauds, Ponzi schemes, and other forms of malicious activities having plagued digital asset markets around the world. He added that although this unfortunate situation has caused a great deal of pain and losses among both investors and operators alike, he hopes that lessons have been learned from it so as not to repeat similar mistakes in future years.
Hard Lessons Learned
The co-founder expressed his regret over what had happened but noted that hopefully hard lessons can be learned from this experience going forward. He concluded by thanking all those who had supported Galois Capital during its short duration as an active crypto hedge fund, expressing his hope for a brighter future ahead for digital assets despite these recent setbacks.
Although Galois Capital ultimately ceased operations due to FTX’s collapse, there is still much hope for digital assets moving forward into 2023 and beyond – especially if similar mistakes are avoided by all involved parties within this young yet rapidly evolving ecosystem!