Weekly Updates

Caddi Weekly Update - Feb 22nd

Galois Capital is shutting down. Coinbase Insider Trading.
Copy link

Galois Capital Shutting Down

Another week, another victim. We could make an entire market with bets on how many more players were affected by FTX.

Founder, Kevin Zhou, wrote a letter to investors saying that Galois Capital can no longer continue because of its exposure to FTX. All trading has ceased, and the fund has reversed its holdings, with Galois reportedly selling its bankruptcy claims for approximately $0.16 on the dollar, according to Decrypt.

The quantitative fund had over $200m in AUM before FTX and SBF went down. In his Twitter post, Zhou said:

"In spite of that, I am proud to say that although we lost almost half our assets to the FTX disaster and then sold the claim for cents on the dollar, we are among the few who are closing shop with an inception-to-date performance which is still positive."

We're at the point in the market where we've received more apologies over Twitter than over before. It feels like a good time to go long on crisis management agencies...

Coinbase's Insider Trading Case

Where there is money, there seems to be fraud at the moment.

Coinbase's former product manager, Ishan Wahi, pleaded guilty to two counts of conspiracy to commit wire fraud Tuesday in connection to an insider-trading scheme at the exchange.

Wahi had shared "information about upcoming token listings to the San Fransisco-based exchange to generate about $1.5 million in ill-gotten profits," reports Decrypt.

This was just the ammunition that the SEC needed to claim that a number of the tokens under investigation are actually illegal securities because they are "investment contracts." The implications of this case could be the spark that the SEC needs to push their agenda on whether or not certain tokens and assets are commodities or securities.  

You can read the full details of the case and its implications here but the essence of it is that the sector is forcing the regulators to play their hand. In which direction? Nobody knows.

Weekly newsletter
No spam. Just the latest releases and tips, interesting articles, and exclusive interviews in your inbox every week.
Read about our privacy policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
© 2023 Caddi Finance