The SEC Charges Titan Global Management with Securities Violations
In a recent statement, the US Securities and Exchange Commission (SEC) accused Titan Global Management of using misleading performance metrics in its advertisements. The SEC also highlighted multiple compliance failures by the fintech firm, including misleading disclosures about client asset custody and the unauthorized use of client signatures. As a result, Titan has agreed to a cease-and-desist order and will pay an $850,000 fine. Here are the key points:
1. Titan Global Management used hypothetical performance metrics in misleading advertisements.
2. The firm faced multiple compliance failures, including improper hedge clauses and unauthorized use of client signatures.
3. Conflicting disclosures were made to clients regarding asset custody.
4. Titan failed to adopt policies and procedures for employee personal trading in crypto assets.
5. The SEC found that Titan made misleading statements about its Titan Crypto strategy product, advertising annualized performance results of up to 2,700%.
This SEC action serves as a warning for all advisers to ensure compliance when offering and marketing complex strategies. It is part of the SEC’s broader crackdown on the crypto industry, which has seen lawsuits against Binance and Coinbase and charges against other individuals and firms. Please note that this article is for informational purposes only and should not be considered as legal, tax, investment, financial, or other advice.
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