Policy • August 21, 2023, 4:57PM EDT Published 1 minute earlier on 
The Block
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.
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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.
