COINOTAG recommends • Exchange signup |
💹 Trade with pro tools |
Fast execution, robust charts, clean risk controls. |
👉 Open account → |
COINOTAG recommends • Exchange signup |
🚀 Smooth orders, clear control |
Advanced order types and market depth in one view. |
👉 Create account → |
COINOTAG recommends • Exchange signup |
📈 Clarity in volatile markets |
Plan entries & exits, manage positions with discipline. |
👉 Sign up → |
COINOTAG recommends • Exchange signup |
⚡ Speed, depth, reliability |
Execute confidently when timing matters. |
👉 Open account → |
COINOTAG recommends • Exchange signup |
🧭 A focused workflow for traders |
Alerts, watchlists, and a repeatable process. |
👉 Get started → |
COINOTAG recommends • Exchange signup |
✅ Data‑driven decisions |
Focus on process—not noise. |
👉 Sign up → |
- Recent regulatory scrutiny has brought Galois Capital’s practices to the forefront of the crypto investment landscape.
- The case underscores the critical need for compliance with the SEC’s Custody Rule to ensure the security of digital assets.
- Galois Capital’s settlement reveals the ongoing challenges of maintaining investor trust in an unpredictable market.
This article analyzes Galois Capital’s recent SEC settlement, highlighting the implications for investor protection and adherence to regulatory standards in the crypto space.
Galois Capital Faces SEC Charges Over Custody Rule Violations
In a significant development, Galois Capital has come under the SEC’s investigation for failing to adhere to custody regulations. This failure led to the unsafe handling of certain crypto assets, which were kept in online trading accounts rather than secured with a qualified custodian as required by the Custody Rule. The ultimate consequences of these actions became starkly apparent following the collapse of FTX in November 2022, resulting in the loss of nearly 50% of the fund’s assets.
Failure to Communicate Clearly with Investors
The SEC’s report further highlights a troubling trend in Galois Capital’s investor relations. Allegations indicate that the firm misinformed some clients about their redemption options. Specifically, certain investors were led to believe that redemption requests required at least five business days’ notice prior to month-end, while others were permitted to redeem on shorter notice. This inconsistency raises serious concerns regarding the firm’s commitment to transparency and its duty to uphold investor trust, which is critical in the volatile world of cryptocurrency investments.
Settlement and Investor Reimbursement
Without admitting or denying the SEC’s findings, Galois Capital has opted to settle by paying a civil penalty of $225,000. This financial penalty is intended to be allocated to harmed investors, marking an essential step towards restitution. The SEC has reiterated its commitment to enforcing robust investor protection measures, signaling to other firms the necessity of compliance and accountability within the crypto market.
COINOTAG recommends • Professional traders group |
💎 Join a professional trading community |
Work with senior traders, research‑backed setups, and risk‑first frameworks. |
👉 Join the group → |
COINOTAG recommends • Professional traders group |
📊 Transparent performance, real process |
Spot strategies with documented months of triple‑digit runs during strong trends; futures plans use defined R:R and sizing. |
👉 Get access → |
COINOTAG recommends • Professional traders group |
🧭 Research → Plan → Execute |
Daily levels, watchlists, and post‑trade reviews to build consistency. |
👉 Join now → |
COINOTAG recommends • Professional traders group |
🛡️ Risk comes first |
Sizing methods, invalidation rules, and R‑multiples baked into every plan. |
👉 Start today → |
COINOTAG recommends • Professional traders group |
🧠 Learn the “why” behind each trade |
Live breakdowns, playbooks, and framework‑first education. |
👉 Join the group → |
COINOTAG recommends • Professional traders group |
🚀 Insider • APEX • INNER CIRCLE |
Choose the depth you need—tools, coaching, and member rooms. |
👉 Explore tiers → |
Implications for the Future of Crypto Fund Management
This incident serves as a stern reminder of the rigorous standards required for crypto fund management, especially in the wake of significant market events like the FTX disaster. Galois Capital previously drew attention for flagging potential risks associated with Terra’s algorithmic stablecoin, UST, which eventually led to the collapse of the broader Terra ecosystem. Such foresight, however, has been overshadowed by its regulatory infractions, emphasizing the importance of adhering to compliance standards while managing investor assets responsibly.
Conclusion
The case of Galois Capital illustrates the continuing need for high compliance standards in the cryptocurrency industry, ensuring that investor assets are adequately safeguarded and transparently managed. As regulators increase scrutiny, it is imperative for firms in the crypto space to adhere strictly to established rules to foster trust and protect investors. The lessons learned from this situation resonate throughout the industry, calling for enhanced diligence and transparency to navigate the complex financial landscape ahead.
COINOTAG recommends • Exchange signup |
📈 Clear interface, precise orders |
Sharp entries & exits with actionable alerts. |
👉 Create free account → |
COINOTAG recommends • Exchange signup |
🧠 Smarter tools. Better decisions. |
Depth analytics and risk features in one view. |
👉 Sign up → |
COINOTAG recommends • Exchange signup |
🎯 Take control of entries & exits |
Set alerts, define stops, execute consistently. |
👉 Open account → |
COINOTAG recommends • Exchange signup |
🛠️ From idea to execution |
Turn setups into plans with practical order types. |
👉 Join now → |
COINOTAG recommends • Exchange signup |
📋 Trade your plan |
Watchlists and routing that support focus. |
👉 Get started → |
COINOTAG recommends • Exchange signup |
📊 Precision without the noise |
Data‑first workflows for active traders. |
👉 Sign up → |
COINOTAG recommends • Members‑only research |
📌 Curated setups, clearly explained |
Entry, invalidation, targets, and R:R defined before execution. |
👉 Get access → |
COINOTAG recommends • Members‑only research |
🧠 Data‑led decision making |
Technical + flow + context synthesized into actionable plans. |
👉 Join now → |
COINOTAG recommends • Members‑only research |
🧱 Consistency over hype |
Repeatable rules, realistic expectations, and a calmer mindset. |
👉 Get access → |
COINOTAG recommends • Members‑only research |
🕒 Patience is an edge |
Wait for confirmation and manage risk with checklists. |
👉 Join now → |
COINOTAG recommends • Members‑only research |
💼 Professional mentorship |
Guidance from seasoned traders and structured feedback loops. |
👉 Get access → |
COINOTAG recommends • Members‑only research |
🧮 Track • Review • Improve |
Documented PnL tracking and post‑mortems to accelerate learning. |
👉 Join now → |