Galois Capital Settles SEC Charges with $225K Fine

The crypto hedge fund faced allegations of improper asset custody and misleading redemption practices.

Galois Capital failed to safeguard client assets by using non-qualified custodians like FTX.
The firm lost approximately half of its assets during the FTX collapse in November 2022.
Galois misled investors about redemption policies, favoring some clients over others.
The SEC settlement includes a $225,000 civil penalty to be distributed to affected investors.
Galois Capital has ceased operations since February 2023 following the FTX debacle.