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SEC Charges Galois Capital with Custody Violations and Misleading Investors
Summary: The U.S. Securities and Exchange Commission (SEC) has recently charged Galois Capital, a crypto-focused advisory firm, with custody failures related to the safekeeping of client assets, including crypto assets. The SEC's investigation revealed that Galois Capital did not ensure that certain crypto assets were maintained with a qualified custodian, which is a violation of the ...
The U.S. Securities and Exchange Commission (SEC) has recently charged Galois Capital, a crypto-focused advisory firm, with custody failures related to the safekeeping of client assets, including crypto assets. The SEC's investigation revealed that Galois Capital did not ensure that certain crypto assets were maintained with a qualified custodian, which is a violation of the Investment Advisers Act's Custody Rule. Additionally, the firm misled investors regarding redemption practices, allowing some investors to redeem their assets with fewer days’ notice than others. As a result, Galois Capital has agreed to a settlement, including a $225,000 civil penalty.
These actions by the SEC highlight the increasing regulatory scrutiny on crypto firms, especially concerning the proper custody and handling of client assets, which is crucial for investor protection in the rapidly evolving crypto industry.
Tags: Digital Custody,Galois Capital,SEC
Link: SEC Charges Galois Capital with Custody Violations and Misleading Investors [Copy]
