Crypto-focused quantitative hedge fund, Galois Capital, has announced its closure and will be returning its remaining money to investors, according to documents seen by the Financial Times.

Galois Capital had managed approximately $200m in assets before it became one of the highest-profile victims of the FTX scandal when half of its assets were trapped on the collapsed cryptocurrency exchange.

The hedge fund had withdrawn some money, but still had about half of its assets stuck on FTX when the exchange collapsed. As many as one million creditors have been identified in FTX's Delaware bankruptcy, with its founder, Sam Bankman-Fried, due to face trial in October on fraud charges, to which he has pleaded not guilty.

Galois Capital has halted all trading and unwound all of its positions as it is no longer viable. In a letter to investors, co-founder Kevin Zhou wrote that given the severity of the FTX situation, they do not think it is tenable to continue operating the fund both financially and culturally.

Zhou indicated in the letter his preference for selling the fund’s claim on FTX, rather than going through a lengthy legal process. Since sending the letter, Galois has sold its claim for approximately 16 cents on the dollar.

Zhou is known for his early criticism of cryptocurrency luna and linked stablecoin terraUSD ahead of their $40bn collapse last year. Much of Galois's trading was acting as a market maker, which allowed it to make tiny gains on other investors' trades.