Hedge fund Galois Capital has confirmed that it is shuttering its operations after losing nearly half of its capital during the collapse of cryptocurrency exchange FTX.

The confirmation came after the Financial Times (FT) published a news regarding the closing of the crypto-focused quantitative fund.

In a Twitter post Galois Capital co-founder Kevin Zhou said: “I appreciate the outpouring of support today when the FT article came out. 

“Thank you all for the kind words.  Yes, it is true that our flagship fund is shutting down.”

Galois Capital has offloaded its bankruptcy claims for 16 cents on the dollar, according to the FT report. The firm is also returning its remaining capital to the investors.

Zhou also said: “Although this is the end of an era for Galois, the work we have done together for the past few years has not been in vain.

“I can’t say more than this for now.  Stay tuned.”

Zhou added: “Crypto will endure. These setbacks are temporary and will come to pass.”

The cryptocurrency sector witnessed turmoil after FTX and its affiliates filed for bankruptcy protection in November last year.

Around 130 firms, including West Realm Shires Services and Alameda Research, were among the affiliated companies that had filed for insolvency under Chapter 11 of the US Bankruptcy Code.