SEC charges crypto investment manager with misleading advertising, custody claims
Fintech investment adviser Titan Global Capital Management has agreed to a cease-and-desist order by the United States Securities and Exchange Commission (SEC), along with censure and penalties after the agency pressed charges against it relating to advertising and compliance failures.
According to the SEC, the New York-based firm made misleading claims on its website that were based on “hypothetical performance” in violation of the SEC’s amended marketing rule of December 2020. This was the first case of charges made under that rule. SEC senior enforcement officer Osman Nawaz said in a statement:
Titan claimed “annualized” performance, based on three weeks of data, could lead to returns of up to 2,700% on its Titan Crypto product, which debuted in August 2021. The SEC further found that the firm also made unclear statements about crypto asset custody and other policies and failed to adopt appropriate policies on employee trading in the period leading up to October 2022.
Related: Titan launches actively managed crypto portfolio for US investors
Titan is registered by the SEC and a member of the Financial Industry Regulatory Authority self-regulatory organization. The firm self-reported some of the issues and cooperated with the investigation before agreeing to the SEC order, without admitting or denying the SEC findings. The SEC action als included $192,454 in disgorgement of ill-gotten gains with interest and a fine of $850,000 that will be distributed to affected customers.
1/ SEC's case against Titan suggests continued enforcement focus on ALL crypto market participants, including those that have affirmatively registered with and are regulated by the SEC.https://t.co/fOtWcDpmll
The SEC has made tightened enforcement
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