- Crypto hedge fund Galva Capital is shutting down after suffering significant losses in the FTX crash last year.
- The remaining money in the fund will be distributed to its investors.
Popular crypto hedge fund Gallois Capital is shutting down after operating in the crypto space for six years. The fund previously announced on February 20 that it would close due to losses following the collapse of ftx Last year.
Gallows Capital was identified as one of the most prominent victims of Sam Bankman-Fried’s failed crypto empire.
Galois Capital will return the remaining assets to investors
according to a report from financial timesGalva Capital plans to return the remaining funds to its investors after liquidating the company.
According to documents seen by the FT, the company informed its investors that it had halted all business activities.
In a letter to its clients, the hedge fund revealed that 90% of the funds that were not stuck in FTX would be returned to investors.
The remaining 10% will reportedly remain in the fund until discussions with auditors, administrators and other interested parties are finalized.
Co-founder Kevin Zhou said that instead of going through the legal process and filing the claims in bankruptcy court, the claims would sell for around 16 cents on the dollar. Kevin Zhou added,
“Given the severity of FTX’s situation, we do not believe it is financially and culturally appropriate to continue operating the fund, once again I am very sorry for the current situation we find ourselves in.”
As one of the largest crypto-focused quant funds, Galois went from managing nearly $200 million in assets to losing $40 million on FTX.
The hedge fund was able to recoup some of its funds from the bankrupt exchange, but nearly half of its assets have been stagnant since last November.
