The US Securities and Exchange Commission (SEC) is increasing its pressure on cryptocurrency companies. A new lawsuit has emerged. The agency, which recently sued one of the largest companies in the NFT sector, is now targeting the consulting firm Galois.
SEC’s New Crypto Lawsuit
The Securities and Exchange Commission has just announced charges against the Florida-based crypto company Galois Capital Management LLC. The commission claims that this company misled fund investors about redemptions. To resolve the charges, Galois agreed to pay $225,000 to harmed investors. The SEC’s announcement includes the following details:
“The SEC’s decision found that, from July 2022, Galois Capital failed to ensure that certain crypto assets held by the private fund it advised were maintained with a qualified custodian, violating the Custody Rule of the Investment Advisers Act. According to the decision, Galois Capital held certain crypto assets in online trading accounts on crypto asset trading platforms that were not qualified custodians, including FTX Trading Ltd. Approximately half of the fund’s assets under management from early to mid-November 2022 were lost in connection with FTX’s collapse.”
