Galois Capital issued an official statement confirming the fund’s closure shortly after the Financial Times revelation.
Galois Capital: we are not starting a new fund
The foundation announced on Twitter that it would be closing. Galois Capital issued a statement saying that due to the FTX catastrophe, they lost almost half of their assets. Even though they were one of the few businesses to end with still-positive earnings to this point, the demanded US dollars were eventually sold.
Moreover, a strict non-disclosure agreement with BTIG governing the sale of FTX ownership will be enforced, and they will be bound by it. As a result, they won’t discuss the agreement’s terms, such as the price, the buyer, or the sale date.
BTIG, Schulte Roth, and Galois have now worked together on an auction.
This comes following the news from yesterday that the hedge fund Galois Capital had to shut down because 50% of its assets were stranded in the FTX. Kevin Zhou, a co-founder of Galois, also claimed that the fund had suspended all trading and was no longer active since it was no longer financially possible following the collapse of FTX.
A quantitative fund with a crypto concentration based in Texas, Galois, claimed to have “significant exposure” to the exchange before FTX’s demise. The amount managed at the time was $200 million. The interpretation of Sam Bankman- Fried
Although the creator, Kevin Zhou, maintains they are only about $40 million, a Financial Times study indicates that the price might be as high as $100 million.
Investors, however, will receive 90% of the available funds and will not be limited to the shuttered cryptocurrency exchange FTX Galois will control the final 10%. At the same time, conversations with the governance participants and auditors are ongoing.