Companies Editor's Picks News

Galois Capital Closes its Doors as the Result of the FTX Collapse

Galois Capital Shuts Down Operations Amid the FTX Collapse

Galois Capital, a renowned crypto investment firm, has unfortunately closed operations after losing half of its capital amid the FTX collapse. Keeping the considerable loss in mind, the Co-founder of the firm, Kevin Zhou, stated that the business cannot be continued. As per this scenario, all trading on the platform has reportedly been halted, and the firm has reversed all of its holdings. 

Similarly, Galois Capital is also selling its bankruptcy claims for almost $0.16. In addition, all investors would receive approximately 90% of the available funds on the now defunct exchange. The remaining 10% would be temporarily held by Galois Capital until all discussions with auditors are carried out.

The Decline of Galois Capital

Galois Capital had a whopping sum of approximately $45 million exposed to the bankruptcy of FTX previously in November. Zhou came into the spotlight soon after he predicted the crash of Terra last year. Similarly, he profited from shorting the native token of Terra, LUNA. Despite such an unfortunate end to Galois Capital, the firm is still among the few that closed operations with a positive inception-to-date performance. However, Galois would only proceed to close its main fund and return all of its money to the investors.

FTX was one of the largest cryptocurrency exchanges, and it shook the crypto world with its proceedings of filing for bankruptcy. A total of nine million customers and investors inevitably had to face losses worth millions as a result. The percussion and aftershocks of the exchange’s fall are still causing harm to the crypto market.

US Authorities Probe Ex-FTX Engineer, Nishad Singh

“Crypto Will Endure” – Kevin Zhou

Galois Capital was a crypto-focused quantitative fund that had approximately $200 million under management prior to the collapse of FTX. Despite being at the end of the road, Galois Capital and its co-founder have a positive attitude towards the crypto market. Zhou stated, 

“Although this is the end of an era for Galois, the work we have done together for the past few years has not been in vain. I can’t say more than this for now. Stay tuned.”

Zhou further added,

“Crypto will endure. These setbacks are temporary and will come to pass. Stay strong and good luck. I’ll see you guys around.”

The entirety of the tragic saga started with the collapse of Terra, which was later on followed by the bankruptcy of Three Arrows Capital. Eventually, the failure of FTX and Alameda Research made the situation increasingly difficult as the crypto market was set back significantly. The extensive crypto winter tampered the momentum of many crypto firms and startups. Nonetheless, the crypto market seems to gain some momentum. It is an encouraging sign for the industry.

Related posts

BitTorrent Creator advises Ethereum developers not to switch to PoS


Ripple Posts a Job Vacancy that Hints at a Possible IPO.


Solana Points to Slope Mobile Wallet After Hack

Joseph Alalade