The hedge fund acknowledged the reports in a thread on Twitter on Monday, writing, “It is true that our flagship fund is closing down.” The company also stated that the FTX collapse caused it to lose over half of its assets and that it eventually “sold the claim for pennies on the dollar.”
The Financial Times broke the story of the fund’s liquidation on Monday. The publication reported that fund investors had already received a letter stating that all trading had been suspended and that open positions were being rolled back at the time.
Kevin Zhou, a co-founder of Galois Capital, apologized for the circumstance and explained that the fund could no longer justify continuing operations due to the FTX collapse in the letter to investors.
According to FT, Zhou said that the investors in the fund will get 90% of the money that is still available. Galois Capital would hold onto 10% till further notice.
