Fallout from the collapse of Sam Bankman-Fried’s cryptocurrency empire continues to impact the hedge fund world with news that Galois Capital, one of the world’s largest crypto-focused hedge funds is to shut down after losing a large chunk of its capital in the collapse of FTX, according to a report by the Financial Times.
Fallout from the collapse of Sam Bankman-Fried’s cryptocurrency empire continues to impact the hedge fund world with news that Galois Capital, one of the world’s largest crypto-focused hedge funds is to shut down after losing a large chunk of its capital in the collapse of FTX, according to a report by the Financial Times.
The report cites an investor note written by Galois Capital co-founder Kevin Zhou as saying that: “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.”
In November, CoinDesk reported that Galois Capital had $40 million stuck at FTX. While the FT and CoinDesk reported in January that the firm had sold its bankruptcy claims against FTX, reportedly for 16 cents on the dollar.
The fallout from the FTX collapse and the future of the digital asset hedge fund industry were the subjects of the latest Hedgeweek Insights Report, Building Back Better.
