SEC Reaches Settlement with Crypto Investment Advisory Firm Galois Capital
The US Securities and Exchange Commission has charged and reached a settlement with Galois Capital, an investment advisory firm focusing on cryptocurrencies.
The charges were related to the firm’s handling of client assets, particularly a private fund investing in crypto. According to the SEC, Galois failed to comply with the Custody Rule, putting investors at risk of losing or misusing their assets.
The agency’s co-chief of Enforcement’s Asset Management Unit emphasized that they will continue to hold accountable advisors who violate their obligations to protect investors.
The firm neglected to ensure that the crypto held by the private fund were with a qualified custodian starting in July 2022, and instead held them with non-qualified custodians such as FTX Trading LTD.
