On August 21, the Securities and Exchange Commission (SEC) revealed that it has filed charges against Titan Global Capital Management USA LLC, a FinTech investment advisor based in New York, for making untrue statements to investors about how they handle cryptocurrency holdings.
As stated by the SEC’s official decision, from August 2021 to October 2022, Titan offered many different tricky plans to regular investors using its trading app on phones.
These allegations center on the company’s alleged distribution of inaccurate details to investors concerning their management of cryptocurrency assets.
The SEC has expressed worries about Titan Global Capital Management’s alleged violation of disclosure regulations related to their holdings in cryptocurrencies.
However, it was found that the company shared false information on its website about how well these plans could work. They even talked about performance results that were really high, up to an incredible 2,700 %, for their Titan Crypto plan.
This happened because Titan didn’t follow the needed steps and rules, including making the right plans and doing what was required in the updated marketing rule from the Commission in December 2020.
Osman Nawaz, Chief of Enforcement’s Complex Financial Instruments Unit said, “Titan’s advertisements and disclosures painted a misleading picture of certain of its strategies for investors. This action serves as a warning for all advisers to ensure compliance.”
Titan participated in the investigation willingly and agreed to comply with the SEC’s instructions, acknowledging its violation of the Advisers Act. Without expressly confirming or disputing the SEC’s findings, Titan consented to a cease-and-desist directive and accepted an official rebuke.
Furthermore, the company committed to reimbursing $192,454 in addition to prejudgment interest and taking on a civil penalty totaling $850,000. This financial penalty will be divided among clients who experienced unfavorable results.
