The United States Securities and Exchange Commission (SEC) has charged Titan Global Capital Management, a fintech investment adviser, with advertising and compliance failures.
The SEC ordered the firm to stop its activities, pay penalties, and accept censure. The SEC said that Titan made false claims on its website that used “hypothetical performance” data, which violated the SEC’s new marketing rule from December 2020.
This was the first case under this rule. Titan advertised “annualized” returns of up to 2,700% for its Titan Crypto product, which launched in August 2021, based on only three weeks of data.
The SEC also found that Titan was unclear about how it stored crypto assets and other policies, and did not have proper rules for employee trading until October 2022.
