LONDON (Reuters) -Galois Capital hedge fund founder Kevin Zhou mentioned on Monday his flagship fund would shut after “dropping nearly half” of the fund’s cash when cryptocurrency change FTX collapsed.
Zhou’s assertion, launched on Twitter, confirmed a report within the Monetary Occasions that the hedge fund had determined to shut its primary fund and return its cash to buyers.
FTX, as soon as among the many world’s high crypto exchanges, shook the sector in November by submitting for chapter, leaving an estimated 9 million clients and buyers dealing with billions of {dollars} in losses.
In his tweet, Zhou additionally mentioned Galois Capital had misplaced nearly half of its belongings “to the FTX catastrophe”.
Zhou informed the fund’s buyers, based on the Monetary Occasions report, that the cash caught in FTX was value round half of the hedge fund’s $200 million in belongings.
The newspaper report cited an investor letter which mentioned the hedge fund was now not viable, had stopped buying and selling and exited its positions.
After fast positive factors in the course of the pandemic, the cryptocurrency market plunged in 2022 as rising rates of interest and a collection of high-profile collapses at crypto corporations prompted buyers to ditch dangerous belongings.
The worth of all cryptocurrencies is round $1.2 trillion, down from a peak of $3 trillion in November 2021, based on market tracker CoinGecko.
Reporting by Nell Mackenzie and Elizabeth Howcroft; Modifying by Dhara Ranasinghe and Mark Potter
