SEC Fines Galois Capital $225K for Custody Violations, Settles Case
CryptoNewsTerminal Staff03 Sep, 2024
SEC Fines Galois Capital $225K for Custody Violations, Settles Case
The U.S. Securities and Exchange Commission (SEC) has charged crypto hedge fund Galois Capital with violating custody rules, according to an official SEC press release. The SEC alleged that Galois failed to comply with rules concerning the safekeeping of client assets and misled investors about redemptions. Galois has agreed to pay a $225,000 civil penalty to settle the case, which will be distributed to harmed investors. The firm reportedly decided to wind down its operations last year amid the fallout from the FTX collapse and sold its FTX claims for about 16 cents on the dollar. This case highlights the SEC's focus on enforcing custody rules in the crypto industry. Firms that fail to comply with these rules may face significant penalties. ```
