The former will repay the remaining funds to its investors after having half of its assets stranded on the trading platform.
The Financial Times stated that Galois Capital, a hedge fund that oversaw assets worth around $200 million, stopped offering trading services and shut operations. The business said that $100 million of its capital was stranded in the insolvent exchange, making it one of the unfortunate FTX investors.
It guaranteed that customers would get 90% of their money without getting lost on the platform.
When administrators and auditing companies have concluded all required conversations on the subject, the remaining 10% will be given.
“Given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally. Once again, I’m terribly sorry about the current situation we find ourselves in,” Co-Founder Kevin Zhou stated.
Due to the drawn-out legal procedure and the delayed reimbursements for customers, he also suggested that the company’s choice to shut down is preferable to apply for bankruptcy protection.
Zhou concluded that 2022 had been disastrous for the whole cryptocurrency business due to several failures, including the Terra crash, the bankruptcy of 3AC, and the FTX issue. Yet he continues to support digital assets because he thinks they will succeed in the long run.
The list of organizations affected by the FTX disaster is extensive and includes some well-known financial players. BlackRock, the most significant asset manager in the world, Temasek, a Singaporean investment firm; and Tiger Global Management, a US-based hedge fund, are a few examples.
According to the executive, the company wants to launch a new initiative “based on principles of full transparency” using the native coin MIDAS.
“This is not the end, but rather the beginning of something new. I understand the difficult decision to close Midas and apologize to anyone who lost money. I will do my best to make sure you can recoup your losses in the new project,” he added.