Galois suffers a $40 million loss due to FTX.
Galois, one of the world’s most important crypto-focused quantitative funds, has ceased operations. This latest cryptocurrency news comes after the company revealed that it lost a significant portion of its capital in the collapse of FTX.
Kevin Zhou, a co-founder of the hedge fund, told the Financial Times that they lost $40 million following the collapse of the FTX cryptocurrency exchange. He stated that
“Given the severity of the FTX state of affairs, we don’t assume it’s tenable to proceed to work the fund each financially and culturally. I’m once more deeply sorry for the current situation we’ve found ourselves in.”
The company revealed in November that its $40 million was caught on the FTX platform. Again, Zhou warned buyers that it could take several years to recover some funds. He mentioned it at the time;
“We will work tirelessly to maximize our chances of recovering captured capital by any means.”
The failure of FTX continues to bring down other companies.
According to the Monetary Occasions, Galois has offered its chapter claims for 16 cents on the dollar. Zhou admitted as much.
“This tragic saga ranging from the luna collapse to the 3AC [Three Arrows Capital] credit score disaster to the FTX/Alameda failure, has set the crypto house again considerably. Nonetheless, I remain optimistic about cryptocurrency’s long-term prospects.”
Several corporations have filed for bankruptcy since FTX’s demise. Earlier this year, the lending arm of cryptocurrency platform Genesis filed for bankruptcy, owing more than $3 billion.
BlockFi is another company that filed for bankruptcy after receiving much attention from FTX.
