SEC fines Galois Capital $225K for crypto asset safeguarding failures

The Securities and Exchange Commission (SEC) has settled charges against Galois Capital Management LLC, a Florida-based investment adviser, for failing to comply with regulations regarding the safeguarding of client assets, including crypto assets. Galois Capital, which advised a private fund investing primarily in crypto assets, did not use qualified custodians for certain holdings and misled investors about redemption notice periods. The firm will pay a $225,000 civil penalty, which will be distributed to affected investors. The SEC's investigation, led by Annie Hancock and Rory Alex, was supervised by several senior officials from the Division of Enforcement's Asset Management Unit.