Galois Capital, a hedge fund that was one of the companies that lost money when FTX went bankrupt, decided to stop trading after seeing fifty percent of its holdings get stuck on the failing exchange. The decision has been made to liquidate the fund and distribute the remaining assets to the original investors.

On November 12, 2022, the hedge fund acknowledged in a statement that it has large exposure to the FTX exchange. The statement was posted on the coverage firm’s official Twitter account.

A letter was sent to investors in the fund informing them that all trading had ceased and that the fund had reversed its holdings, as stated in a story published in the Financial Times. Kevin Zhou, who was one of the co-founders of Galois Capital, apologized to the company’s investors, saying that due to the severity of the problem with FTX, they cannot find a justification to continue running the company.

On top of this, the hedge fund promised its investors that they would get ninety percent of the money that is not held hostage by the FTX exchange. The remaining 10% will be retained indefinitely by the corporation until all pending issues have been resolved through dialogue.

In addition to these factors, Zhou has indicated that he is considering selling the hedge fund’s claims rather than wait for a protracted bankruptcy proceeding that can take up to ten years. The Galois Capital co-founder says that buyers of these rights have a greater ability to file claims in bankruptcy courts.

The FTX bankruptcy resulted in the freezing of millions of dollars belonging to many companies, including New Huo Technology and Nestcoin. One of the many companies that has suffered losses in the wake of the FTX scandal is Galois Capital, which has at least $50 million in assets frozen on the stock market.

Meanwhile, Mt. Gox’s largest creditor has adopted a very similar strategy to Galois Capital by opting for an early payment option rather than waiting for a protracted court proceeding that can take many years to complete. Mt. Gox Investment Fund said on February 17 that it made the decision to receive the payment in September rather than wait any longer to recover its assets.