SEC Fines Galois Capital $225K for Custody Violations and Misleading Investors š±
The #SEC announced settled charges against Galois Capital Management LLC, a Florida-based advisory firm focused on crypto assets, for failing to safeguard client assets, including those considered securities.
#Galois Capital violated the Investment Advisers Act's Custody Rule by not ensuring that certain crypto assets were held with a qualified custodian, instead storing them on platforms like FTX. The collapse of FTX resulted in significant losses for the fund.
Additionally, Galois misled investors about redemption notice periods, favoring some over others. Galois agreed to pay a $225,000 civil #penalty and cease further violations.
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