Galois Capital Shuts Down Hedge Fund Amid FTX Situation

02/20/2023 05:36 • Tech Ticker • 129 views

On February 20, it was reported that the hedge fund Galois Capital decided to stop all transactions, close all positions, and return 90% of the funds not trapped on the FTX to customers after closing the fund, while the remaining 10% will be temporarily suspended until it is determined after discussion with the managers and auditors. Kevin Zhou, its co-founder, said, “Given the seriousness of the FTX situation, we think it is untenable to continue to operate the fund financially and culturally.” He said that he would rather sell the fund’s claims on FTX than go through a lengthy legal process. Since Galois sent the letter, it has sold its debt for about 16 cents.

The hedge fund Galois Capital decided to close and return 90% of the funds not trapped in FTX to customers

Interpret the above information:

Galois Capital, a hedge fund, has recently announced its decision to halt all transactions, close all positions, and return 90% of the funds to customers after its closure. This decision was made due to the FTX situation, which was deemed financially and culturally untenable for the operation of the fund. Kevin Zhou, the co-founder of Galois Capital, stated that he would rather sell the fund’s claims on FTX than go through a lengthy legal process.

The FTX situation referred to here is unclear, but it is possible that the hedge fund faced financial difficulties due to its investments in FTX. FTX is a cryptocurrency exchange that has been gaining popularity in recent years. It is possible that Galois Capital’s decision to sell its debt for about 16 cents is an attempt to mitigate losses incurred through their investments in FTX.

The decision to shut down the hedge fund and return 90% of the funds to customers is a responsible move that prioritizes the interests of investors. This move also reflects the ethical standards upheld by Galois Capital, demonstrating its commitment to financial integrity and transparency. The remaining 10% temporarily suspended until discussions with managers and auditors are concluded further reinforce this commitment.

The decision to sell claims on FTX is an attempt to take a proactive approach to mitigate losses rather than undergo a lengthy and expensive legal process. This practical approach is a wise choice that not only minimizes the impact of the FTX situation on the fund but also demonstrates respect for the investors’ money.

In summary, Galois Capital’s decision to shut down the hedge fund and return 90% of the funds to customers demonstrates its commitment to responsible and ethical practices. Moreover, the practical approach of selling claims on FTX reflects a proactive and wise decision-making strategy that prioritizes investor interests.’

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Galois Capital Shuts Down Hedge Fund Amid FTX Situation

The hedge fund Galois Capital decided to close and return 90% of the funds not trapped in FTX to customers

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