Galois Capital Closes Main Fund Due to FTX Scandal

Posted on 02/21/2023


Cryptocurrency hedge fund Galois Capital is closing down its flagship fund. This is after losing a massive section of its capital in the collapse of the FTX crypto exchange. In November 2022, Galois Capital had US$ 40 million stuck at FTX. At the time, Kevin Zhou informed his investors that it would take a few years to recover “some percentage” of the funds. Galois plans to return the remaining money to its investors.

Galois Capital worked with law firm Schulte Roth and BTIG to run an auction on its FTX claims.

The blowup of TerraLUNA which led to the collapse of Three Arrows Capital (3AC) has impacted cryptocurrency as a possible viable asset class for large institutional investors. The FTX/Alameda Research scandal is the largest setback for the industry.

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