A co-founder of Galois said the fund has halted all trading because it is no longer viable post-FTX.
In a tweet on Monday, Galois Capital, one of the world’s largest crypto-focused quantitative funds, announced it was giving up after losing a significant portion of its capital in FTX’s collapse.
Galois Capital tweeted after the Financial Times reported the fund was closing: “Thank you all for the kind words. Yes, it is true that our flagship fund is shutting down.”
Galois Capital had $40 million stuck at FTX in November. At that time, Zhou told investors that recovering “some percentage” of the funds would take years.
He told investors at the time that he would work tirelessly to maximize the chances of recovering stuck capital.
The Financial Times reported that Galois has sold its bankruptcy claims for 16 cents on the dollar. CoinDesk reported that FTX claims were selling for around 13 cents on the dollar on the bankruptcy marketplace Xclaim in January.
Zhou wrote in a note seen by FT that the entire tragic saga, including the Luna collapse, 3AC [Three Arrows Capital] credit crisis, and FTX/Alameda failure, had significantly slowed down the crypto sector. Despite this, I am still optimistic about the long-term prospects of crypto.