The SEC filed charges against Titan Global Capital Management for compliance and misleading advertising.
The SEC continues to work to protect investors in all industries against possible accusations, as well as the cryptocurrency industry.
Accusations from SEC to Titan Global Capital Management
The SEC has filed charges against fintech investment advisor Titan Global Capital Management. This lawsuit stands out as the first lawsuit filed under the revised marketing rule in 2020. The SEC has accused Titan Global Capital Management of misleading advertising and compliance failures.
According to the SEC, the New York-based company made misleading claims based on “hypothetical performance” on its website, violating the marketing rule as amended in December 2020. This was the first instance of accusation under marketing rules. SEC’s senior enforcement officer, Osman Nawaz, said in a statement on this case that marketing rules must ensure compliance of consultants and that this case serves as a reminder to other consultants of compliance.
Titan Global Capital Management has made misleading claims regarding the performance of its products, according to the SEC. For example, the company claimed that its Titan Crypto product could deliver an annualized return of 2,700 percent based on just three weeks of data. It was also stated that the company made vague statements about crypto-asset custody and did not comply with its compliance policies.
1/ SEC's case against Titan suggests continued enforcement focus on ALL crypto market participants, including those that have affirmatively registered with and are regulated by the SEC.https://t.co/fOtWcDpmll
— Justin Browder (@jlb410) August 21, 2023
The SEC appears to be aiming to more closely monitor crypto investment advisors with this lawsuit. Earlier in February, a new focus was announced from the Examinations Division and proposed changes to retention rules that would affect cryptocurrency firms. As a result of the litigation, Titan Global Capital Management may be required to pay penalties to the SEC and distribute payments to affected customers.
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