FTX: Galois capital losses funds; shuts down

It seems there’s no end yet as to how many dry leaves are left to fall from the FTX withered tree. One of these leaves is hedge fund Galois Capital, which is shutting down after losing funds to the FTX collapse.

According to the report, 90% of funds held by Galois that were not engulfed by FTX will be distributed to investors while the company keeps 10% until further discussions and decisions are made.

Galois Capital is a San Francisco-based crypto trading and funding firm co-founded by Kevin Zhou, and Maël Barut in 2017. Galois is one of the firms that invested a huge amount of money in the FTX before its collapse in 2022. As of November 2022, Financial Times confirmed that about $100 million belonging to Galois was trapped in FTX.

Furthermore, the leadership of the Galois have tendered apologies to its investors stating its decision to stop operations and resolve to handle all matters properly.

Kevin Zhou also added that Galois is planning to sell off its hedge funds claims instead of going through the bankruptcy process which could be endless. He believes that new buyers will do better in going after claims in bankruptcy courts.

The FTX effect 

The fall of FTX saw about $8 billion of funds belonging to customers become inaccessible. While the former CEO, SBF was arrested and granted bail, several companies have declared either bankruptcy or a huge loss after FTX’s collapse.

Apart from its 9.6 million affected customers, firms such as Amazon, Netflix, Apple, Microsoft, Twitter, and Meta were mentioned as creditors that were affected by FTX. Others are The Wall Street Journal, Coindesk, and The New York Times. Chainalysis, Binance, Galaxy Digital, Bittrex, Coinbase, and Yuga Labs are part of the crypto firms listed as well.

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