Cryptocurrency

The U.S. Securities and Exchange Commission (SEC) has announced the completion of criminal charges against Galois Capital Management LLC, a Florida-based advisory firm focused on cryptocurrency investments. 
The firm, which was previously registered as an investment advisor for a private fund investing primarily in crypto assets, faced allegations that it failed to comply with key regulations designed to protect client assets. 
According to the SEC’s official statement, Galois Capital violated the Depository Rule under the Investment Advisers Act by failing to ensure that certain crypto assets held by the private fund were held at a qualified custodian. Instead, the firm held these assets in online trading accounts on platforms that did not meet the criteria of qualified custodians, such as FTX Trading Ltd. This protocol breach led to significant financial losses, culminating in the collapse of FTX in November 2022, resulting in the loss of approximately half of the fund’s assets under management. 
In addition to the custody errors, the SEC found that Galois Capital misled investors about the notice period required for redemptions. The firm reportedly told some investors they needed at least five business days’ notice before the end of the month to get their investments back, while allowing others to get their investments back with fewer days’ notice. 
“By failing to comply with the provisions of the Custody Rule, Galois Capital exposed investors to the risk of loss, misappropriation, or misappropriation of fund assets, including crypto assets,” said Corey Schuster, Co-Chief of the SEC Enforcement Division’s Asset Management Unit. 
*This is not investment advice. 
 Continue Reading: <a href="https://en.bitcoinsistemi.com/breaking-sec-sues-another-cryptocurrency-company/">BREAKING: SEC Sues Another Cryptocurrency Company</a>

BREAKING: SEC Sues Another Cryptocurrency Company

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