One of the world’s largest crypto-focused quantitative funds has called it quits after losing a sizeable portion of its capital in the collapse of FTX, according to a report from the Financial Times.
“Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally,” wrote Galois Capital co-founder Kevin Zhou in a note seen by the FT. “Once again I’m terribly sorry about the current situation we find ourselves in.”
In November, CoinDesk reported that Galois Capital had $40 million stuck at FTX. At the time, Zhou told his investors that it would take a few years to recover “some percentage” of the funds.
“We will work tirelessly to maximize our chances of recovering stuck capital by any means,” he told investors at the time.
The FT reported that Galois has sold its bankruptcy claims for 16 cents on the dollar. In January, CoinDesk reported that FTX claims were going for around 13 cents on the dollar on the bankruptcy marketplace Xclaim.
“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,” wrote Zhou in a note seen by FT. “However, I, even now, remain hopeful for crypto’s long-term future.”