Titan Global Capital Management settled with the US SEC without admitting or denying the charges.
The United States Securities Exchange Commission (SEC) is the top financial regulatory body in the US. Over the last few years, this independent regulatory body has been very strict against the crypto companies or companies’ exposure to the crypto sector via using traditional securities laws, even though these rules do not apply to this sector.
On 21 Aug 2023, The US SEC announced that Titan Global Capital Management agreed to pay a $1 million fine to settle the SEC’s charges.
According to the US SEC, the fund manager was misleading Investors because it was claiming to give up to 2,700% return on the investment, which was totally against the Securities Act.
The SEC body explained how the fund manager used its past investment profit result to mislead people.
“Titan promised investors “annualized” performance results as high as 2,700% for its Titan Crypto product but didn’t inform clients the returns were inferred from a hypothetical three-week period during which no trading transpired. Simply put: They were fabricated,” the SEC body explained.
A few crypto investors criticised the SEC’s this move and said that the SEC body is only targeting only those fund manager companies which are providing services internally.
SEC vs Crypto
The whole crypto industry is aware of the SEC’s harsh enforcement action against the crypto sector. Through the regulatory actions, the SEC agency created a very complicated environment for the crypto companies to run crypto services in the US jurisdiction.
This year, the SEC agency faced huge criticism for the suits against Coinbase crypto exchange, a highly compliant public crypto exchange.
In the present time, the Coinbase lawyers are trying their best to fight against the US SEC’s charges to prove that the Coinbase exchange always tried to follow all the rules & regulations to comply with all financial rules but it was only the SEC body which created a very bad situation intentionally for the crypto companies so that Crypto companies can violate securities law so the it (SEC) can take regulatory action.
Read also: Thailand seeks Facebook ban because of Ponzi crypto ads
SEC charges Titan Global Capital Management over 2,700% Returns On Crypto Investment promo
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