Hedge fund Galois blows up on FTX loss, Hong Kong’s crypto push, Saudi Aramco invests in Web3

Hedge fund Galois blows up on FTX loss, Hong Kong’s crypto push, Saudi Aramco invests in Web3

Galois closes flagship fund on FTX losses

Hedge fund Galois Capital will shutter its flagship fund after taking heavy losses in the FTX collapse last year. Galois admitted losses between $40 million and $45 million due to exposure to the bankruptcy chaos. The losses totalled nearly half of the fund’s assets. Kevin Zhou, the co-founder and voice of Galois Capital, famously predicted the implosion of the Terra ecosystem in May, but his foresight seemingly failed to account for the contagion that would contribute to FTX’s downfall. FTX was brought to its knees in November. Sam Bankman-Fried, former CEO of the defunct crypto exchange, is facing fraud charges for his role in the company’s death spiral. He has pleaded not guilty to all criminal charges.

Composable Finance CTO leaves post, cites unethical leadership

A Composable Finance executive has left the company in a flurry of angry tweets. Ex-CTO Karel Kubat alleged that the protocol’s management withheld financial records from him and the community, and conducted suspicious transactions. “We’re a decentralised community however,” tweeted Kubat, “and simple, unethical management is enough for me to leave.”

Composable Finance confirmed Kubat’s departure on Twitter. “While this naturally prompts questions and concerns, our team is committed to addressing these questions and alleviating any concerns,” the protocol tweeted, saying it would hold a public question and answer session.

Hong Kong opening up crypto to retail investors

Hong Kong’s securities watchdog has proposed to allow retail investors to purchase large cap crypto assets, including Bitcoin and Ether. The Securities and Futures Commission’s proposal comes as good news for Hong Kong crypto investors, who have awaited regulatory clarity under Hong Kong’s China-friendly regime. Retail investors have been curtailed from crypto markets since 2018, when crypto trading was limited to professional investors with portfolios in excess of HK$8 million ($1 million). Commentators have warned that Hong Kong’s push to become a digital asset hub could leave the US trailing in the industry.

Dexible exploited for $2m: ‘These things happen’

Dexible, a DeFi exchange aggregator, lost $2 million in an exploit Friday. Security firm Peckshield tweeted a warning to the protocol highlighting an excess of $1.5 million in funds lost. Dexible then released several promotional tweets over a period of four hours, before eventually disclosing the situation to the public, informing users that “these things happen.” The majority of funds stolen belonged to whales, a colloquial term for token holders with large wallets.

Saudi Aramco exploring Web3 tech

Oil company Saudi Aramco has entered the Web3 fray, partnering with technology provider droppGroup to build blockchain applications for its workers. The signed memorandum of understanding between the two entities sets the stage for Web3 product development, which Saudi Aramco claimed will provide a wide range of services geared towards employees. Web3 is the up-and-coming third iteration of the internet, built around blockchain technology and drawing from fields such as artificial intelligence and tokenised networks.

FTX Japan will resume withdrawals Feb 21

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FTX subsidiary FTX Japan will resume withdrawals starting February 21, the company announced on Monday. Crypto and fiat withdrawals have been halted since November, following the collapse of FTX and partner firm Alameda Research. FTX Japan was ordered to suspend operations entirely by December, but was granted an extension until March. The company has warned users that withdrawals may be slowgoing due to high request volumes.

NFTs on Bitcoin

A new functionality which brought NFTs to the Bitcoin network has inspired a developer to do the same on rival blockchain Litecoin. Ordinal Inscriptions, a method for minting non-transaction content on Bitcoin, has been all the rage on the Bitcoin network, with more than 154,000 inscriptions, or NFTs, created since January. At the behest of a Twitter user offering 5 Litecoins (about $500) to whomever could port the tech to Litecoin network, developer Anthony Guerrera answered the call and launched Litecoin Ordinals. The story is significant for the Litecoin network, as its dependence on Bitcoin-based code has left it unable to field NFTs – until now.

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