Galois Capital – a cryptocurrency hedge fund based in San Francisco – reportedly shut down as a consequence of the collapse of FTX.
The former had half of its assets stuck on the trading venue and will return its remaining funds to investors.
One More Going Down
As reported by the Financial Times, Galois Capital – a hedge fund that managed approximately $200 million in assets – ceased all trading services and closed down. The company was among the unfortunate FTX investors, revealing that $100 million of its capital was trapped in the bankrupt exchange.
It assured that clients will receive 90% of their money not stuck on the platform. The remaining 10% will be distributed after administrators and auditing firms finalize necessary discussions on the matter.
“Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally. Once again I’m terribly sorry about the current situation we find ourselves in,” Co-Founder Kevin Zhou stated.
He also argued that the company’s decision to close down is better than filing for bankruptcy protection due to the lengthy legal process and the delayed refunds for users if going for the second option.
Zhou concluded that 2022 has been devastating for the entire cryptocurrency industry due to numerous setbacks, such as the Terra crash, the 3AC demise, and the FTX saga. However, he remains a proponent of digital assets, believing in their long-term success.
Midas Investments Sank, too
The list of entities impacted by the FTX catastrophe spreads far and wide and contains some well-known financial players. The world’s largest asset manager – BlackRock, the Singaporean investment company – Temasek, and the US-based hedge fund – Tiger Global Management – are among those.
The contagion also reached the cryptocurrency platform Midas Investments. CEO Iakov Levin announced its closure towards the end of 2022, citing severe financial losses prompted by Celsius’ bankruptcy and FTX’s fiasco.
The exec said the organization’s goal is to establish a new project “built on principles of full transparency” that will have its own native token, called MIDAS.
“This is not the end, but rather the beginning of something new. I understand the difficult decision to close Midas and apologize to anyone who lost money. I will do my best to make sure you can recoup your losses in the new project,” he added.
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