The U.S. Securities and Exchange Commission has charged and subsequently settled with crypto-focused investment advisory firm Galois Capital over issues with how it held client assets.

The charges involved a private fund that mostly invested in crypto, the SEC said in a statement on Tuesday.

“By failing to comply with Custody Rule provisions, Galois Capital exposed investors to risks that fund assets, including crypto assets, could be lost, misused, or misappropriated,” said Corey Schuster, co-chief of the SEC Enforcement Division’s Asset Management Unit, in a statement. “We will continue to hold accountable advisers who violate their core investor protection obligations.”

This is a developing story.

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