Galois Capital is the second crypto hedge fund to close owing to FTX’s downfall.
Once FTX collapsed, San Francisco-based bitcoin hedge company Galois Capital closed.
The former would restore client monies after half of its assets were blocked on the trading venue.
Another Down
The Financial Times stated that Galois Capital, a hedge fund with $200 million in assets, closed. The corporation invested $100 million in FTX, which went bankrupt.
It promised clients 90% of their money not stranded on the site. Administrators and auditing companies will discuss the remaining 10% before distributing it.
“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 suggested that closing the firm is better than filing for bankruptcy protection owing to the lengthy legal procedure and delayed user reimbursements.
Zhou concluded that the Terra catastrophe, 3AC collapse, and FTX scandal had devastated the cryptocurrency business in 2022. He still believes in digital assets’ long-term potential.
Midas Investments Sank
FTX’s victims include major financial institutions. BlackRock, Temasek, and Tiger Global Management are examples.
Midas Investments was infected. CEO Iakov Levin declared its closure in late 2022, citing substantial financial losses from Celsius’ bankruptcy and FTX’s debacle.
The executive claimed the group wants to create a new initiative “based on principles of full transparency” with its own native cryptocurrency, 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.
