Crypto Hedge Fund Galois Capital Shuts Down After Losing $40-M In FTX

One of the world’s largest crypto-focused quantitative funds, Galois Capital, has called it quits after losing a sizeable portion of its capital in the collapse of FTX, the firm said in a tweet, Sam Reynolds reported for CoinDesk.

Photo Insert: Galois Capital had $40 million stuck in FTX in November.

"Thank you all for the kind words. Yes, it is true that our flagship fund is shutting down," Galois Capital tweeted after the Financial Times reported on the fund closing.

In November, CoinDesk reported that Galois Capital had $40 million stuck in FTX. At the time, Galois Capital founded Kevin Zhou told his investors that it would take a few years to recover “some percentage” of the funds.

“We will work tirelessly to maximize our chances of recovering stuck capital by any means,” he told investors at the time.

The FT reported that Galois has sold its bankruptcy claims for 16 cents on the dollar. In January, CoinDesk reported that FTX claims were going for around 13 cents on the dollar on the bankruptcy marketplace Xclaim. Nell Mackenzie and Elizabeth Howcroft of Reuters reported that Galois lost half of its assets at FTX.

“This entire tragic saga starting from the luna collapse to the 3AC [Three Arrows Capital] credit crisis to the FTX/Alameda failure has certainly set the crypto space back significantly,” wrote Zhou in a note seen by FT.

“However, I, even now, remain hopeful for crypto’s long-term future.”

According to the FT report, Galois will return the remaining money to its investors. The value of all cryptocurrencies is around $1.2 trillion, down from a peak of $3 trillion in November 2021, according to market tracker CoinGecko.

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