* 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 related to advertising and compliance failures.
* The SEC found that Titan made misleading claims on its website based on “hypothetical performance” in violation of the SEC’s amended marketing rule of December 2020. This is the first case of charges made under that rule.
* Titan claimed “annualized” performance based on three weeks of data could lead to returns of up to 2,700% on its Titan Crypto product. The SEC also found that the firm made unclear statements about crypto asset custody and other policies and failed to adopt appropriate policies on employee trading.
* Titan is registered by the SEC and is a member of the Financial Industry Regulatory Authority. The firm self-reported some of the issues and cooperated with the investigation.
* The SEC action includes $192,454 in disgorgement of ill-gotten gains with interest and a fine of $850,000 that will be distributed to affected customers.
* The SEC has made tightened enforcement for crypto investment advisers a regulatory goal and has proposed changes to custody rules that could negatively impact cryptocurrency firms.
* Titan stated that it fully cooperated with the SEC’s inquiry and has taken remedial efforts to enhance its compliance program.
SEC charges crypto investment manager Titan with misleading advertising claims
