The FTX collapse led by Sam Bankman-Fried continues to affect the global crypto market. One of the major victims of the FTX crash has now decided to close down and return the money to its investors.
FTX Still Hounding Crypto Market
Galois Capital has reportedly shut down and returned money to investors after terminating all trading and unrolling all its positions in the market. The hedge fund was managing approximately $200 million in assets and was one of the largest crypto-focused pools in the market last year. According to Kevin Zhou, Galois Capital believes it cannot continue operating after being impacted by the FTX crash, although he expressed regret about the situation. As previously reported by WikiBIT, Galois Capital was caught off guard when around half of its assets were trapped in the collapsed FTX exchange.
Galois Clients To Get Their Money Back
The Financial Times report claims that one million creditors were identified in the bankruptcy proceedings of FTX led by Sam Bankman-Fried (SBF). SBF is expected to face trial for fraud charges in October, and he has already pleaded not guilty to the charges.
In a letter to its clients, Galois Capital stated that its clients will receive 90% of the money that is not trapped on FTX, while the remaining 10% will be held temporarily until further notice.
The co-founder of Galois Capital suggested that the fund's claim on FTX be sold to avoid the lengthy legal process, which can last more than a decade. The lengthy legal process has distressed buyers of such claims.
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