US SEC: About half of Galois Capital's assets under management were lost due to the collapse of FTX in November 2022

Golden Finance reported that the U.S. Securities and Exchange Commission announced on its official website that Galois Capital misled fund investors about the notice period required for redemption. In order to settle, Galois agreed to pay a civil penalty of $225,000, which will be distributed to the damaged investors of its fund. Since July 2022, Galois Capital has failed to ensure that certain crypto assets held by the private equity funds it advises are in violation of the custody rules of the Investment Advisers Act. Galois Capital holds certain crypto assets in online trading accounts of crypto asset trading platforms (including FTX Trading Ltd.), which are not qualified custodians. From early November to mid-November 2022, about half of the assets managed by the fund were lost due to the collapse of FTX.