Cryptocurrency-focused hedge fund Galois Capital will close and return the remaining funds to investors after losing US$40 million worth of assets in the collapse of crypto exchange FTX.com, the Financial Times reported on Monday.
See related article: Former FTX executive Nishad Singh negotiating guilty plea on fraud charges: Bloomberg
Fast facts
- Galois had halted all trading and closed out all positions. The hedge fund’s clients will receive 90% of the funds that are not trapped in FTX, and the remaining 10% will be withheld until discussions with administrators are finalized.
- Galois reportedly sold its claim for 16 cents on the dollar as the legal process to recoup the funds was likely to last for more than a decade, and buyers of such distressed claims have greater expertise in pursuing such claims in court.
- “This entire tragic saga starting from the Luna collapse to the [Three Arrows Capital] credit crisis to the FTX/Alameda failure has certainly set the crypto space back significantly,” wrote Galois co-founder Kevin Zhou in a letter to investors seen by the Financial Times. “However, I, even now, remain hopeful for crypto’s long-term future.”
- Galois managed roughly US$200 million in assets at one point last year. The firm reportedly had around half of its assets trapped at FTX when it collapsed.
- FTX filed for Chapter 11 bankruptcy on Nov. 11, and its founder and former chief executive Sam Bankman-Fried is currently under house arrest at his parent’s residence in California on charges of securities fraud, wire fraud, conspiracy, money laundering, and violating campaign finance rules.
- Bankman-Fried has pleaded not guilty to all charges, and the date of his first trial has been set for Oct. 2, 2023.
See related article: Sam Bankman-Fried pleads not guilty to fraud charges in FTX exchange collapse
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: https://forkast.news/headlines/crypto-hedge-fund-galois-captial-close-ftx/
- 11
- 2023
- a
- administrators
- After
- All
- and
- around
- arrest
- article
- Assets
- back
- Bankman-Fried
- Bankruptcy
- buyers
- california
- Campaign
- capital
- certainly
- Chapter
- Chapter 11
- Chapter 11 Bankruptcy
- charges
- chief
- claim
- claims
- clients
- Close
- closed
- Co-founder
- Coindesk
- Collapse
- collapsed
- COM
- Conspiracy
- Court
- credit
- crisis
- crypto
- crypto exchange
- Crypto exchange FTX
- Crypto Hedge
- crypto space
- Currently
- Date
- decade
- discussions
- distressed
- Dollar
- Entire
- Even
- exchange
- executive
- expertise
- Failure
- finalized
- finance
- financial
- Financial Times
- Firm
- First
- Former
- founder
- fraud
- Fraud Charges
- from
- FTX
- FTX Exchange
- FTX.com
- fund
- funds
- future
- Galois Capital
- greater
- guilty
- guilty plea
- hedge
- hedge fund
- House
- HTTPS
- in
- Investors
- IT
- Kevin Zhou
- Last
- Last Year
- Laundering
- Legal
- letter
- likely
- long-term
- losing
- Luna
- managed
- million
- million worth
- mln
- Monday
- money
- Money Laundering
- more
- Nishad Singh
- Oct
- ONE
- plato
- Plato Data Intelligence
- PlatoData
- pleads
- Point
- positions
- process
- receive
- related
- remain
- remaining
- Reported
- return
- roughly
- rules
- saga
- Sam
- Sam Bankman-Fried
- Securities
- securities fraud
- set
- significantly
- sold
- Space
- Starting
- such
- The
- The Financial Times
- three
- Three Arrows
- Three Arrows Capital
- times
- to
- Trading
- trial
- under
- Violating
- will
- Wire
- Wire Fraud
- worth
- year
- zephyrnet