The Securities and Exchange Commission (SEC) has settled a lawsuit with the now-defunct crypto hedge fund Galois Capital for $225,000. The SEC accused Galois of failing to use qualified custodians for its clients' assets, instead holding them on exchanges like FTX. Additionally, Galois was accused of misleading investors about the notice period required for fund redemption. Despite settling, Galois did not admit to any wrongdoing. Co-founder Kevin Zhou defended their use of Fireblocks, a non-qualified custodian, as the best available solution at the time. Galois Capital, known for shorting Terra’s LUNA token before its collapse, lost half its assets in the FTX collapse and closed in February 2023

Wikipedia.

The Securities and Exchange Commission (SEC) has settled a lawsuit with the now-defunct crypto hedge fund Galois Capital for $225,000. The SEC accused Galois of failing to use qualified custodians for its clients' assets, instead holding them on exchanges like FTX. Additionally, Galois was accused of misleading investors about the notice period required for fund redemption. Despite settling, Galois did not admit to any wrongdoing. Co-founder Kevin Zhou defended their use of Fireblocks, a non-qualified custodian, as the best available solution at the time. Galois Capital, known for shorting Terra’s LUNA token before its collapse, lost half its assets in the FTX collapse and closed in February 2023

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