Galois has halted all trading after losing $40 million to FTX.
The hedge fund has become the latest entity to be negatively affected by FTX’s collapse.
The company said it would take a few years to recover some of its funds.
Galois loses $40 million to FTX
Galois, one of the leading crypto-focused quantitative funds in the world, has shut down operations. This latest cryptocurrency news comes after the company revealed that it lost a sizeable portion of its capital in the collapse of FTX.
The hedge fund’s co-founder Kevin Zhou told the Financial Times that they lost $40 million following the collapse of the FTX cryptocurrency exchange. He said;
“Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally. Once again, I’m terribly sorry about the current situation we find ourselves in.”
In November, the company revealed that its $40 million was stuck on the FTX platform. Back then, Zhou told investors that it would take a few years to recover some percentage of the funds. At the time, he said;
“We will work tirelessly to maximize our chances of recovering stuck capital by any means.”
FTX’s collapse continues to take more companies down
According to the Financial Times, Galois has sold its bankruptcy claims for 16 cents on the dollar. Zhou stated that
“This entire tragic saga starting from the luna collapse to the 3AC [Three Arrows Capital] credit crisis to the FTX/Alameda failure, has certainly set the crypto space back significantly. However, I, even now, remain hopeful for crypto’s long-term future.”
Since FTX’s collapse, a few companies have filed for bankruptcy. Earlier this year, the lending arm of crypto platform Genesis filed for bankruptcy, with over $3 billion in debt.
BlockFi is another company that filed for bankruptcy following its massive exposure to FTX.