The SEC alleges that Titan misrepresented performance metrics in advertisements and failed to disclose how it custodied crypto assets, among other violations.
Titan agreed to a cease-and-desist order and will pay an $850,000 civil penalty.
The Securities and Exchange Commission charged the New York-based fintech investment adviser Titan Global Management with securities violations including some related to cryptocurrency custody.
The SEC alleges that Titan used misleading hypothetical performance metrics in advertisements — including purported "annualized" performance results of up to 2,700% for the the Titan Crypto strategy, according to a statement.
Furthermore, Titan allegedly failed to properly disclose how the firm custodied crypto assets, in addition to failing "to adopt policies and procedures concerning employee personal trading in crypto assets."
"Titan’s advertisements and disclosures painted a misleading picture of certain of its strategies for investors," said Osman Nawaz Chief of the SEC's Enforcement’s Complex Financial Instruments Unit. "This action serves as a warning for all advisers to ensure compliance.”
Titan cooperated with the SEC's investigation and agreed to a cease-and-desist order. The firm will pay over $192,000 in disgorgement as well as a civil penalty of $850,000 that will go to affected customers.
Source: theblock.co