The Securities Exchange Commission announced in a post on its website that Galois Capital misled fund investors about the notice period required for redemptions. To settle, Galois agreed to pay a civil penalty of $225,000, which will be distributed to impaired investors in its fund. Since July 2022, Galois Capital has violated the custody rules of the Investment Advisers Act by failing to secure certain crypto assets held by its proposed Private Offering Fund. Galois Capital holds certain crypto assets in online trading accounts of crypto asset trading platforms, including FTX Trading Ltd., which are not qualified custodians. From early to mid-November 2022, about half of the assets under management of the fund were lost due to the collapse of FTX.