- The SEC charged Titan Global Capital Management for misrepresenting asset performance values and claiming that investors will earn falsely inflated yield percentages.
- Titian must pay over $1M in penalties.
The SEC has taken action against Titan Global Capital Management, a New York-based FinTech investment adviser, for misleading practices and compliance failures. Titan was charged for employing misleading hypothetical performance metrics in its advertisements, claiming falsely inflated annualized performance yields for its Titan Crypto strategy.
Case Details
The charges highlight compliance failures on Titan’s part, including conflicting disclosures to clients about custody of crypto assets, misleading liability disclaimer language in client agreements, and a need for policies regarding employees trading in crypto assets.
Titan has cooperated with the SEC’s investigation and agreed to a cease-and-desist order, a censure, a settlement amount of $190,000 in prejudgment interest, and an $850,000 civil penalty to be distributed to affected clients.
Conclusion
The investigation, supervised by the SEC’s Complex Financial Instruments Unit, emphasizes the need for transparency and compliance in the financial sector. This case powerfully conveys that misleading practices and non-compliance will be punished with stringent penalties as the SEC maintains vigilance over the industry.
