ISTANBUL: A US-based crypto advisory firm settled charges regarding custody failures, the Securities and Exchange Commission (SEC) said Tuesday in a statement. Galois Capital Management LLC, a former registered investment adviser for a private fund that primarily invested in crypto assets based in the state of Florida, failed to comply with requirements related to the safeguarding of client assets, including crypto assets being offered and sold as securities, it said. The SEC said it has also found that Galois misled fund investors about the notice period required for redemptions. To settle the SEC's charges, Galois agreed to pay a civil penalty of $225,000, which will be distributed to its fund's harmed investors, it added. The regulatory watchdog said it found that Galois Capital failed to ensure that certain crypto assets held by the private fund that it advised were maintained with a qualified custodian beginning in July 2022, which is a violation of the Investment Advisers Act's Custody Rule. "By fa iling to comply with Custody Rule provisions, Galois Capital exposed investors to risks that fund assets, including crypto assets, could be lost, misused, or misappropriated," Corey Schuster, co-chief of the SEC Enforcement Division's Asset Management Unit, said in the statement. Source: Anadolu Agency