Crypto Hedge Fund Gallows Capital Shut Down – ‘We Lost Nearly Half of Our Assets to the FTX Disaster’
Crypto hedge fund Galois Capital is now being shut down as nearly half of its assets are stuck on insolvent FTX which filed for bankruptcy in November. “Galois Capital is a crypto hedge fund that specializes in over-the-counter trading and algorithmic market making as we know through its website”.
According to documents seen by the Financial Times, investors were told by Gallows Capital that all trading had been halted and all its positions were liquidated. Galva co-founder Kevin Zhou writes: “Taking the bankruptcy case seriously, we do not believe we are well advised to continue operating the fund and continue to operate our business in a significant manner, and we are prepared to do so.” …., but of course I regret the current situation and feel that what we find ourselves in here is a matter of great concern.
Hedge fund clients will not receive 90% of their money on FTX by Galva, adding that the fund is temporarily withholding 10% until it finalizes its discussions with administrators and auditors, and the publication states that the fund’s claims on FTX have been sold for approximately 16 cents to the dollar after investors were informed of its closure, and that Galva previously told Bloomberg that he owed $45 million in assets due to FTX’s bankruptcy. Was. Zhou is best known for warning about the impending explosion of cryptocurrency Terra (LUNA) and stablecoin Terrausd (UST) last year. They also benefited from the shortening of LUNA, which is now called LUNA Classic (LUNC). He further goes on to say that certainly these sad times starting from the collapse of the crypto exchange to the failure of Three Arrows Capital have definitely rocked the crypto asset. Following the news of his hedge fund’s closure, he took to Twitter to confirm the closure of Galva’s flagship fund. Lets say on Monday we gave away almost half of our assets and we definitely decide not to go ahead, then sold the claim for cents on the dollar, and we are one of those people who have Closing shops with performance which is still positive. Although this is the end of our era and a difficult time, the work we have done and been with us over the past few years has not been in vain and I cannot say much more now.
