SEC выдвинула обвинения in relation to the New York-based investment adviser Titan Global Capital Management USA LLC for misleading investors through advertising of hypothetical performance metrics.
According to the agency, from August 2021 to October 2022 the company promoted a mobile app for crypto trading, promising annual profits of around 2700% when using their investment strategies.
«In Titan’s advertising, it was not specified that their forecasts of the strategy’s effectiveness in the first three weeks [are automatically applied] to the entire year», the Commission said.
The SEC also accused the firm of providing conflicting information about the safekeeping of user assets, using improper “hedging” clauses in agreements, unauthorized use of client signatures, and failing to adopt a policy regarding cryptocurrency trading by its employees. All of this violates the Investment Advisers Act.
Without admitting or denying the Commission’s findings, Titan agreed to cease the unlawful conduct, pay $192,454 in restitution, interest through the entry of judgment, and a civil penalty of $850,000 to be distributed among affected clients.
Earlier in August, the SEC froze the assets of the mining company Digital Licensing, accused of fraudulently raising $50 million in cash, as well as unspecified amounts in Bitcoin and Ethereum.