{"id":140297,"date":"2023-09-01T23:54:26","date_gmt":"2023-09-01T18:24:26","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=140297"},"modified":"2023-09-01T23:54:26","modified_gmt":"2023-09-01T18:24:26","slug":"crypto-fund-misled-clients-with-promises-of-2700-returns-sec-claims-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/crypto-fund-misled-clients-with-promises-of-2700-returns-sec-claims-crypto-news\/","title":{"rendered":"Crypto Fund Misled Clients With Promises of 2,700% Returns, SEC Claims – Crypto News"},"content":{"rendered":"
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New York fintech firm Titan Global Capital Management has agreed to pay the U.S. Securities and Exchange Commission over $1 million in fines after the regulator charged it with misleading investors over its crypto product.\u00a0<\/p>\n

In a statement Monday, Wall Street\u2019s top watchdog said<\/a> that Titan made \u201cconflicting disclosures to clients\u201d about how it custodied crypto assets.\u00a0<\/p>\n

Titan, according to Monday\u2019s release, promised investors \u201cannualized\u201d performance results as high as 2,700% for its Titan Crypto strategy but didn\u2019t tell investors the returns were extrapolated from a hypothetical three-week period during which no trading occurred. In other words: They were made up.<\/p>\n

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\u201cTitan\u2019s advertisements and disclosures painted a misleading picture of certain of its strategies for investors,\u201d the SEC said. \u201cThis action serves as a warning for all advisers to ensure compliance.\u201d<\/p>\n

The SEC also alleged that Titan failed to adopt policies and procedures concerning employee personal trading in crypto assets.<\/p>\n

Titan agreed to pay a $850,000 civil penalty that will be distributed to affected clients and give back ill-gotten gains and interest of over $192,000\u2014but did not admit or deny the SEC\u2019s findings.\u00a0<\/p>\n

The SEC under current chairman Gary Gensler has cracked down hard on the digital assets industry this year by suing a number of major crypto brands\u2014particularly those it claims have been flogging unregistered securities.\u00a0<\/p>\n

But today\u2019s charges marked the first time an entity had allegedly violated the SEC\u2019s new marketing rule, which urges investment advisers to ensure the accuracy of disclosures made to existing and prospective investors.\u00a0<\/p>\n

Titan allegedly violated the rule, the SEC said, by \u201cadvertising hypothetical performance metrics without having adopted and implemented required policies.\u201d<\/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

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

But some\u2014including Republican lawmakers<\/a>\u2014say the regulator has overstepped its mark.\u00a0<\/p>\n

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Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

New York fintech firm Titan Global Capital Management has agreed to pay the U.S. Securities and Exchange Commission over $1 million in fines after the regulator charged it with misleading investors over its crypto product.\u00a0 In a statement Monday, Wall Street\u2019s top watchdog said that Titan made \u201cconflicting disclosures to clients\u201d about how it custodied […]<\/p>\n","protected":false},"author":2,"featured_media":108496,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-140297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/140297","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=140297"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/140297\/revisions"}],"predecessor-version":[{"id":147387,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/140297\/revisions\/147387"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/108496"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=140297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=140297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=140297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}