Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Galois Capital flagship fund to close after FTX losses

by Staff GBAF Publications Ltd
0 comment

By Nell Mackenzie and Elizabeth Howcroft

LONDON (Reuters) -Galois Capital hedge fund founder Kevin Zhou said on Monday his flagship fund would close after “losing almost half” of the fund’s money when cryptocurrency exchange FTX collapsed.

Zhou’s statement, released on Twitter, confirmed a report in the Financial Times that the hedge fund had decided to close its main fund and return its money to investors.

FTX, once among the world’s top crypto exchanges, shook the sector in November by filing for bankruptcy, leaving an estimated nine million customers and investors facing billions of dollars in losses.

In his tweet, Zhou also said Galois Capital had lost almost half of its assets “to the FTX disaster”.

Zhou told the fund’s investors, according to the Financial Times report, that the money stuck in FTX was worth around half of the hedge fund’s $200 million in assets.

The newspaper report cited an investor letter which said the hedge fund was no longer viable, had stopped trading and exited its positions.

After rapid gains during the pandemic, the cryptocurrency market plunged in 2022 as rising interest rates and a series of high-profile collapses at crypto firms prompted investors to ditch risky assets.

The value of all cryptocurrencies is around $1.2 trillion, down from a peak of $3 trillion in November 2021, according to market tracker CoinGecko.

(Reporting by Nell Mackenzie and Elizabeth Howcroft; Editing by Dhara Ranasinghe and Mark Potter)