SEC charges fintech firm Titan Global Management over crypto-related violations

Quick Take

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."

Cease-and-desist order

"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.