Galois Capital, a large hedge fund, has been forced to halt all operations, the Financial Times. That follows after a large part of its capital was tied up in the collapsed FTX. The fund, which mainly invested in crypto, will distribute 90 percent of the remaining capital to clients. On November 11 the fund already announced that it has a large part of the capital on FTX; $50 million dollars to be exact.
The FTX blow rumbles on crypto
In recent months, Galois Capital has tried to make the best of the situation, but has not recovered. Kevin Zhou, co-founder of the fund, apologizes to the customers. In addition, he indicates that the extremity of the events make it impossible to continue.
Zhou plans to sell the company’s claims rather than wait for a bankruptcy process. Such procedures can take years. Galois Capital is one of many parties that had large sums of capital on FTX.
The man behind FTX, and ultimately responsible for the debacle, ex-CEO Sam Bankman-Fried (SBF) will stand trial for his actions in October this year. He is currently out on bail and resides at his family home in California.
Sam Bankman-Fried misbehaves again
For the time being, SBF maintains its innocence. He would not have been aware of the cheating with clients’ capital. The prosecutors in the trial have doubts about this and are preparing eight official charges. SBF is said to have been guilty of fraud, among other things.
SBF also recently appeared to be misbehaving again. He contacted potential witnesses in the upcoming trial. The judge hearing his case reprimanded him and banned him from using messaging services.
Last week, SBF seemed to go wrong again. He used a VPN twice in a few days to mask his internet usage. This caused a lot of concern for the accusing party. The judge considered a total internet ban for SBF, but decided not to do so. However, a researcher was put to work to investigate SBF’s internet use.
