Titan Global Capital Management, a New York-based investment advisor, has been sanctioned by the US Securities and Exchange Commission (SEC). This was done as a result of their failure to provide accurate data about their clients’ crypto assets. Titan was charged by the SEC with deceiving its clients by failing to obey the requirements.
Titan failed to adequately inform its consumers about their crypto holdings between August 2021 and October 2022. As a result, Titan was charged by the SEC with failing to follow the norms and procedures established for financial advisors. Titan agreed to halt its acts, pay a fine, and correct the faults in response.
Titan risks a fine of more than $1 million. This includes a $850,000 fine as well as more than $190,000 in interest. Following new requirements that go into effect in 2020, the SEC wants Titan to be open about the performance of its client’s assets.
The SEC discovered that the platform failed to provide accurate information regarding the performance of their assets. It also did not ensure that its employees were trading bitcoins appropriately. Titan admitted these errors to the SEC and stated that they will be corrected.
The SEC is also investigating Titan’s marketing. They allege the company claimed to make a lot of money for its clients, but the SEC believes this is not the case.
The chief of the SEC’s Complex Financial Instruments Unit stressed the importance of corporations following the regulations. Also providing accurate information to clients. The SEC’s goal is to ensure that financial firms follow the regulations in order to safeguard blockchain investors.
Finally, Titan Global Capital Management was fined over $1 million by the SEC for not being truthful about its clients’ cryptocurrency investments. This case demonstrates how important it is for businesses to follow the regulations and give correct information in order to safeguard investors.