Galois Capital Shuts Down Fund Amid FTX Debacle

02/20/2023 05:36 • AI Insights • 86 views

On February 20, it was reported that the hedge fund Galois Capital decided to stop all transactions, close all positions, and return 90% of the funds not trapped on the FTX to customers after closing the fund, while the remaining 10% will be temporarily suspended until it is determined after discussion with the managers and auditors. Kevin Zhou, its co-founder, said, “Given the seriousness of the FTX situation, we think it is untenable to continue to operate the fund financially and culturally.” He said that he would rather sell the fund’s claims on FTX than go through a lengthy legal process. Since Galois sent the letter, it has sold its debt for about 16 cents.

The hedge fund Galois Capital decided to close and return 90% of the funds not trapped in FTX to customers

Analysis based on this information:

Galois Capital, a prominent hedge fund, announced its decision to shut down all transactions and positions due to the FTX situation. As per reports on February 20, the hedge fund plans to return 90% of the non-trapped funds on the FTX to its customers. The remaining 10% will be temporarily suspended, pending determination after discussions with managers and auditors.

Kevin Zhou, the Co-founder of Galois Capital, expressed his views on the situation and mentioned that operating the fund financially and culturally was untenable. The hedge fund founder announced that the fund would prefer to sell off its claims to FTX rather than engage in a lengthy legal process.

The FTX situation has caused significant concerns in the industry, and many firms have been taking precautionary measures. However, Galois Capital’s announcement to close all transactions and positions is significant. The decision highlights the severity of the situation and puts pressure on FTX to address the concerns of its clients.

The hedge fund’s decision to return 90% of the non-trapped funds to its clients is commendable. It shows that the firm had the interest of its clients in mind, and it put their welfare ahead of its profits. The temporary suspension of 10% of the funds shows that the firm is keen on managing its risks and ensuring that the interests of all stakeholders are protected.

Galois Capital’s debt was sold for about 16 cents after the letter was sent to its customers. The sale of the debt shows that the market is aware of the FTX situation and the risks associated with it. However, it would be interesting to see how the situation unfolds and how FTX responds to the concerns of its clients.

In conclusion, Galois Capital’s decision to shut down its fund due to the FTX situation shows the severity of the crisis. It highlights the need for transparency and the importance of protecting the interests of clients. The move puts pressure on FTX to address the concerns of its clients and work towards finding a solution to the crisis.

Overall, the keywords that are essential in understanding the Galois Capital’s decision are Hedge fund, FTX, and debt.

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Galois Capital Shuts Down Fund Amid FTX Debacle

The hedge fund Galois Capital decided to close and return 90% of the funds not trapped in FTX to customers

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