{"id":140240,"date":"2023-09-01T23:59:56","date_gmt":"2023-09-01T18:29:56","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=140240"},"modified":"2023-09-01T23:59:56","modified_gmt":"2023-09-01T18:29:56","slug":"us-sec-charges-fintech-giant-titan-global-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/us-sec-charges-fintech-giant-titan-global-crypto-news\/","title":{"rendered":"US SEC Charges Fintech Giant Titan Global – Crypto News"},"content":{"rendered":"

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The Securities and Exchange Commission (SEC) has brought\u00a0<\/span>charges<\/span><\/a>\u00a0against New York-based FinTech investment adviser Titan Global Capital Management USA LLC (Titan) for misrepresenting hypothetical performance metrics in its advertising and committing multiple compliance failures.\u00a0<\/span><\/p>\n

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Today we announced charges against Titan Global Capital Management USA for using hypothetical performance metrics in ads that were misleading. This marks the first violation of the SEC\u2019s amended marketing rule.https:\/\/t.co\/W23wbvQBsV<\/a><\/p>\n

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\u2014 U.S. Securities and Exchange Commission (@SECGov) August 21, 2023<\/a><\/p>\n<\/blockquote>\n

Between August 2021 and October 2022, Titan used misleading information in its advertisements, promoting hypothetical \u201cannualized\u201d performance results as high as 2,700 % for its Titan Crypto strategy.<\/span><\/p>\n

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However, the SEC has revealed that Titan\u2019s advertisements left out crucial information. Significantly, the hypothetical performance projections wrongly assumed that the strategy\u2019s performance in its first three weeks would continue throughout the year. Moreover, Titan\u2019s advertising violated the SEC\u2019s\u00a0<\/span>marketing rule<\/span><\/a>, amended in December 2020, as the firm did not adopt the required policies and procedures or take the steps outlined in the law.<\/span><\/p>\n

Compliance Failures and Misleading Disclosures<\/span><\/strong><\/h2>\n

Besides misleading performance metrics, the SEC\u2019s order also found that Titan made conflicting disclosures about how it custodied clients\u2019 crypto assets and included liability disclaimer language in its client advisory agreements, creating the false impression that clients had waived non-waivable causes of action against the firm.\u00a0<\/span><\/p>\n

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Titan also self-reported that it failed to obtain client signatures for specific transactions in client accounts and agreed to settle related charges. Additionally, contrary to its representations, Titan did not adopt policies and procedures concerning employee personal trading in\u00a0<\/span>crypto assets<\/span>.<\/span><\/p>\n

Titan\u2019s Cooperation to Charges and Settlement<\/span><\/strong><\/h2>\n
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\u201cWhen offering and marketing complex strategies, investment advisers must ensure the accuracy of disclosures made to existing and prospective investors. The Commission amended the marketing rule to allow for hypothetical performance metrics but only if advisers comply with requirements reasonably designed to prevent fraud,\u201d said Osman Nawaz, Chief of Enforcement\u2019s Complex Financial Instruments Unit.\u00a0<\/span><\/p>\n<\/blockquote>\n

Hence, Titan\u2019s advertisements and disclosures provided a misleading impression of some of its strategies for investors. This action serves as a warning for all advisers to ensure compliance.<\/span><\/p>\n

Titan cooperated with the SEC\u2019s investigation and consented to the entry of the SEC\u2019s order finding that it violated the\u00a0<\/span>Advisers Act<\/span><\/a>. Without admitting or denying the SEC\u2019s findings, Titan agreed to a cease-and-desist order, a censure, and to pay $192,454 in disgorgement, prejudgment interest, and an $850,000 civil penalty that will be distributed to affected clients.<\/span><\/p>\n

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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The Securities and Exchange Commission (SEC) has brought\u00a0charges\u00a0against New York-based FinTech investment adviser Titan Global Capital Management USA LLC (Titan) for misrepresenting hypothetical performance metrics in its advertising and committing multiple compliance failures.\u00a0 Today we announced charges against Titan Global Capital Management USA for using hypothetical performance metrics in ads that were misleading. This marks […]<\/p>\n","protected":false},"author":2,"featured_media":6723,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-140240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/140240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=140240"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/140240\/revisions"}],"predecessor-version":[{"id":147406,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/140240\/revisions\/147406"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/6723"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=140240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=140240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=140240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}