The Securities and Exchange Commission (SEC) has charged Titan Global Capital Management, a fintech investment manager.
The SEC Discovered That Titan Crypto Investment Firm Failed To Establish Suitable Employee Trading Practices
The Securities and Exchange Commission (SEC) has charged Titan Global Capital Management, a fintech investment manager, in a series of allegations relating to advertising and compliance violations.
The SEC said that the New York-based company's website contained false statements about "hypothetical performance," in violation of the SEC's revised marketing rule, which took effect from December 2020.
Based on three weeks of data since its August 2021 launch, Titan had claimed that its Titan Crypto product would return up to 2,700% annualized. The SEC discovered that the company failed to establish suitable employee trading practices prior to October 2022 and made ambiguous claims concerning the custody of cryptocurrency assets and other policies.
Titan Global Capital Management, a company registered with the SEC and a participant in the Financial Industry Regulatory Authority, has accepted a cease-and-desist order, a censure and fines. Titan has self-reported some of the problems and assisted the inquiry.
Without acknowledging or rejecting the findings, they consented to the SEC order. The SEC's actions included a $850,000 penalty that would be given to the harmed clients and a disgorgement of ill-gotten gains of $192,454 with interest.
Senior SEC enforcement officer Osman Nawaz stressed that the action should serve as a reminder to all advisers to ensure compliance.
