A hedge fund that was one of the highest profile victims of the FTX scandal when half its assets were trapped on the collapsed cryptocurrency exchange has decided to close and return its remaining money to investors.

Galois Capital, which last year had been managing around $200mn in assets and was one of the biggest crypto-focused quantitative funds, told investors that it had halted all trading and unwound all its positions as it was no longer viable, according to documents seen by the Financial Times.

In November the FT revealed that Galois, despite pulling out some money, still had around half its assets stuck on FTX when the exchange collapsed.

Galois said in the letter that the fund’s closure would see clients receive 90 per cent of the money not trapped on FTX. The remaining 10 per cent would be temporarily held back until discussions with the administrators and auditor were finalised.