Galois, Inc. Risk Report

🛡️ Financial & Liquidity

Galois Capital has been affected significantly by the collapse of the FTX exchange, resulting in notable financial instability. This has led to the closure of their flagship crypto fund, impacting overall liquidity and raising substantial concerns over financial management. The firm's financial vulnerabilities are exemplified by $100 million being trapped, which underscores the severe impact of external dependencies on its financial health.

• Galois Capital had half of its assets trapped on the FTX exchange 🗓 2023-02-19.
• Despite shorting the crypto fraud Terra, Galois Capital couldn't avoid FTX-related losses, resulting in the closure of its main hedge fund 🗓 2023-02-21.

⚖️ Legal & Regulatory

The company has faced legal ramifications due to regulatory compliance issues connected with Galois Capital's operations. A settlement with the SEC regarding custodial violations related to FTX highlights underlying compliance risks and may lead to closer scrutiny from regulatory authorities, impacting future operations.

• Galois Capital paid $225k to investors as part of an SEC settlement 🗓 2024-09-03.
• The fund manager was charged by the SEC over FTX-linked custody violations 🗓 2024-09-03.