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The US Securities and Exchanges Commission (SEC) has launched an attack on yet another crypto-related company. And won the case before it even got to court. Interestingly, the commission did not target the company for securities law violations this time, but for “custody failures.”
The company that faced the wrath of the most notorious law enforcement agency was Galois Capital Management. The company was a crypto hedge fund focused on algorithmic market making and over-the-counter (OTC) trading. The company had close ties to FTX – the bankrupt crypto exchange, which caused the company to lose access to more than half of its assets.
Notably, at the helm of its operations, the company managed nearly $200 million in assets, making it one of the crypto-focused quantitative funds. The shutdown resulted in the company only returning 90% of non-FTX funds to customers, while the remaining 10% was temporarily held back.
The story is still developing.