SEC charges Galois Capital, Galois settles it

VaselineSeptember 3, 2024

0 Less than a minute

Eighteen months after crypto-focused algorithmic trading fund Galois Capital shut down, explaining that they lost around $40 million in the FTX crash, the SEC has filed a lawsuit against the company for not properly safeguarding their clients’ funds. According to the SEC, instead of complying with SEC requirements that investment advisers hold assets with qualified custodians, such as banks, Galois kept assets on crypto exchanges, including FTX.

The SEC also charged that Galois Capital misled some investors into believing they needed five business days’ notice to redeem assets, while other investors were allowed to redeem assets more quickly.

Galois agreed to a settlement with the SEC in which they will pay a $225,000 penalty that will go to investors who lost money.

VaselineSeptember 3, 2024

0 Less than a minute

Vaseline

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