Galois Capital, a hedge fund that was one of the companies that lost money when FTX went bankrupt, has decided not to continue operating after seeing fifty percent of its holdings get stuck in the failing exchange. The decision has been made to wind down the fund and distribute whatever assets are left over to the original investors.

On November 12, 2022, the hedge fund acknowledged in a statement that it has large exposure to the FTX exchange. The statement was posted on the hedge firm’s official Twitter account.

A letter was sent to the fund’s investors informing them that all trading had been ceased and that the fund had rolled back its holdings, as stated in a story that was published in the Financial Times. Kevin Zhou, who was one of the co-founders of Galois Capital, issued an apology to the company’s investors and said that due to the gravity of the problem with FTX, they are unable to find a justification for continuing to run the company.

In addition to this, the hedge fund promised its investors that they would get ninety percent of the money that are not held hostage by the FTX exchange. The remaining 10% will be held indefinitely by the corporation until all outstanding issues have been resolved via dialogue.

In addition to these factors, Zhou has indicated that he is considering selling the hedge fund’s claims rather than waiting for a drawn-out bankruptcy procedure that may take up to ten years. The co-founder of Galois Capital asserts that purchasers of these claims have a greater ability to pursue claims in bankruptcy courts.

The bankruptcy of FTX resulted in the freezing of millions of dollars belonging to many companies, including New Huo Technology and Nestcoin. One of the numerous companies that has suffered losses as a result of the FTX scandal is Galois Capital, which has at least fifty million dollars in assets that are frozen on the exchange.

In the meanwhile, the biggest creditor to Mt. Gox has taken a strategy very similar to that of Galois Capital by opting for an early payment option rather than waiting for a drawn-out judicial procedure that may take many years to complete. Mt. Gox Investment Fund said on February 17 that it has made the decision to be paid in September rather than waiting any longer to receive its assets back.



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