Breaking: Another Hedge Fund Collapses In Foray Of FTX; Market To Decline?
Crypto News: Sam Bankman-Fried (SBF) led FTX collapse is still hounding the global crypto market. In the latest turn of events, one of the biggest profile victims of the FTX crash has decided to shut down. However, the hedge fund has also formed a decision to return money to the investors.
FTX Still Hounding Crypto Market
According to a report by Financial Times, Galois Capital told its investors that it had terminated all its trading and unrolled all its positions in the market. The hedge fund was managing around $200 million in assets, while it was one of the biggest crypto focused pools by the last year.
Kevin Zhou, Galois Capital reportedly stated that keeping FTX impact in sight, the hedge fund does not believe that it would be able to continue operating. However, he regretted being in this position. Read More Crypto News Here…
Earlier Coingape reported that Galois Capital was caught off guard in the massive FTX collapse. Around half of the assets taken in the consideration of hedge funds were trapped in the collapsed exchange.
Galois Clients To Get Their Money Back
The report suggests that around 1 million creditors were identified in SBF led FTX bankruptcy proceedings. On the other hand, SBF is still due to face trial in October over the fraud charges. Meanwhile, he pleaded not guilty, earlier to these charges.
Galois in the letter stated that its clients would receive 90% of the money which is not trapped on FTX. However, the rest 10% is reportedly temporarily held back until further notice.
Galois Co founder has suggested that to sell the fund’s claim on FTX to prevent the lengthy legal process. He mentioned that bankruptcy proceedings can last for more than a decade or more. The long running process distressed buyers of such claims.
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