The U.S. Securities and Exchange Commission (SEC) has charged and settled with crypto-focused Galois Capital Management LLC, a former registered investment adviser based in Florida, for violations of the Investment Advisers Act's Custody Rule. The SEC alleges that Galois Capital failed to properly safeguard client assets, including holding some of these assets in accounts with the now-bankrupt exchange FTX. The firm has agreed to pay a $225,000 civil penalty. Galois Capital neither admitted nor denied the findings but settled the charges related to FTX-linked custody failures and misleading investors about redemption notice periods.