Galois Capital, a cryptocurrency-focused hedge fund, has announced the closure of its flagship fund. The fund’s termination comes after the company lost nearly half of its assets in the bankruptcy of the bitcoin exchange FTX.

Kevin Zhou, a former quantitative trader at Jane Street Capital, established Galois Capital in 2018. The fund quickly earned a reputation for its effective trading tactics, and at its peak, it handled more than $200 million in assets.

However, the fund’s fortunes began to shift in May 2022, when the Terra ecosystem crashed. Galois Capital was significantly invested in Terra, and the fund lost $40 million to $45 million as a result of the ecosystem’s collapse.

The losses from the Terra collapse were exacerbated by the failure of FTX in November 2022. FTX was one of the world’s major cryptocurrency exchanges, and its demise resulted in a huge loss of confidence in the Bitcoin market.

Galois Capital was unable to recover from the losses it sustained in the Terra and FTX catastrophes. As a result, the fund has chosen to close its flagship fund.

The closure of Galois Capital is a big event in the Bitcoin sector. The fund was one of the world’s most successful cryptocurrency hedge funds, and its demise reflects the market instability that has gripped the sector in recent months.

Source: Hedge fund Galois blows up on FTX loss, Hong Kong’s crypto push, Saudi Aramco invests in Web3 — DL News