USA Cryptocurrency News – Galois Capital, a cryptocurrency hedge fund, will liquidate its $200 million flagship fund even though 50% of its assets are still on the defunct FTX market.
When the Financial Times reported that the fund was shut, the company acknowledged the closure on Twitter on Monday.
The fund, which acknowledged that it had a sizeable chunk of cash trapped on the crypto exchange following its collapse, was hurt by the FTX blow-up in November USA Cryptocurrency News.
Sam Bankman-Fried, the founder of FTX, is set to go on trial in October on fraud-related charges after the company went bankrupt. Galois Capital closes its flagship cryptocurrency fund leaving $100 million on FTX He had previously entered a not-guilty plea. There are almost 1 million creditors listed in the bankruptcy petition.
Co-founder Kevin Zhou stated in a letter to investors that it would refund 90% of the remaining funds in the fund and that the remaining 10% was still being decided by administrators.
The Galois Capital account tweeted, “I am glad to state that although we lost approximately half our assets to the FTX tragedy and subsequently sold the claim for cents on the dollar, we are among the few who are closing shop with an inception-to-date performance which is still positive.
Galois reportedly sold the claim for just 16 cents on the dollar, according to the Financial Times.
Zhou predicted the demise of Terra/Luna and shorted it earlier in the year. Yet, he expresses continued optimism for the cryptocurrency sector, claiming that despite its present problems, it will “endure.”
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