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The US Securities and Exchanges Commission (SEC) has launched an attack at yet another crypto related firm. And, won its case before even reaching the courts. Interestingly, this time around, the commission did not attack the firm over securities law breach but for “custody failures”.
The firm that faced the wrath of the most infamous law enforcement agency was Galois Capital Management. The firm was a crypto hedge fund that focuses in algorithmic market-making and over-the-counter (OTC) trading. The firm had close relations to FTX – the bankrupt crypto exchange, resulting in the firm losing access to over half of its assets.
Notably, at the helm of its operations, the company was managing nearly $200 million in assets, making it one of the crypto-focused quant funds. The closure saw the firm return clients only 90% of the non-FTX trapped funds, whereas the rest 10% was held back temporarily.
The story is still developing.
