Titan Global Management Charged with Securities Violations
The Securities and Exchange Commission (SEC) has charged New York-based fintech investment adviser Titan Global Management with securities violations, including those related to cryptocurrency custody. The SEC alleges that Titan used misleading performance metrics in its advertisements and failed to disclose important information about how the firm handled crypto assets.
Main Points:
- Titan used misleading hypothetical performance metrics in its advertisements, claiming annualized returns of up to 2,700% for its Titan Crypto strategy.
- The firm failed to properly disclose how it custodied crypto assets and didn’t have policies and procedures for employee personal trading in crypto assets.
- The SEC’s Chief of Enforcement’s Complex Financial Instruments Unit, Osman Nawaz, emphasized the need for all advisers to ensure compliance.
- Titan cooperated with the SEC’s investigation and agreed to a cease-and-desist order.
- Titan will pay over $192,000 in disgorgement and a civil penalty of $850,000 to affected customers.
Hot Take:
This case reinforces the importance of transparency and compliance in the crypto industry. Investors need accurate and honest information to make informed decisions. The SEC’s actions demonstrate their commitment to protecting investors and holding financial advisers accountable for their actions. It serves as a reminder to be cautious and do thorough research before investing in any crypto-related products or services.
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