Titan Global was penalized for misleading claims and fraud
The SEC issued a cease and desist order against the financial adviser on charges brought for publicity and compliance violations
Fintech investment adviser Titan Global Capital Management has accepted a cease and desist order from the US Securities and Exchange Commission (SEC), along with a ban and sanctions, after the agency filed charges against it related to advertising and compliance breaches.
According to the SEC, the New York-based company made misleading claims on its website that were based on “hypothetical returns,” in violation of the SEC’s December 2020 amended trading rule. This was the first case of allegations made in under that rule. Osman Nawaz, a senior SEC official in charge of ensuring compliance, said in a statement:
“The Commission amended the trading standard to allow the use of hypothetical performance metrics, but only if advisers meet requirements reasonably designed to prevent fraud. […] This action serves as a warning to all advisers to ensure its fulfillment”.
Titan claimed that “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 determined that the firm also made unclear statements. on custody of crypto assets and other policies, and failed to adopt adequate policies on employee operations in the lead up to October 2022.
Titan is registered with the SEC and is a member of the self-regulatory organization Financial Industry Regulatory Authority. The company reported some of the issues and cooperated with the investigation before accepting the SEC’s order, neither admitting nor denying the SEC’s findings. The SEC’s action also included $192,454 in repayment of ill-gotten gains with interest and a $850,000 penalty to be distributed among affected customers.
K. Tovar
Source: Cointelegraph
(Reference image source: Emmanuel Phaeton, Unsplash)
Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram
