One of the world’s largest crypto-focused quantitative funds has exited after losing a significant chunk of its capital in the FTX collapse, according to a Financial Times report.
“Given the severity of the FTX situation, we do not believe it is reasonable to continue operating the fund both financially and culturally,” Galois Capital co-founder Kevin Zhou wrote in a note seen by the FT. “Once again I am very sorry for the current situation we are in.”
In November, CoinDesk reported that Galois Capital had $40 million stuck in FTX. At the time, Zhou told his investors that it would take a few years to recover “a certain percentage” of the funds.
“We will work tirelessly to maximize our chances of recovering stuck capital by any means necessary,” he told investors at the time.
The FT reported that Galois sold his bankruptcy claims for 16 cents on the dollar. In January, CoinDesk reported that FTX claims would cost around 13 cents on the dollar on the Xclaim bankruptcy market.
“This whole tragic saga, starting from the collapse of the Luna to the 3AC [Three Arrows Capital] The credit crunch to the FTX/Alameda failure has certainly set back the crypto space significantly,” Zhou wrote in a note seen by FT. “However, even now I remain hopeful for the long-term future of crypto.”