On August 21, 2023, the Securities and Exchange Commission (SEC) announced that it has levied charges against “Titan Global Capital Management USA LLC”, a New York-based FinTech investment adviser. The charges stem from Titan’s use of “hypothetical performance metrics” in advertisements that the SEC deemed misleading.
From August 2021 to October 2022, Titan, which provides multiple intricate strategies to retail investors via its mobile trading app, made statements on its website about hypothetical performance. Notably, the firm advertised “annualized” performance results as high as 2,700 percent for its “Titan Crypto strategy”. The SEC’s order alleges that these advertisements were misleading as they omitted crucial information. For instance, the hypothetical performance projections assumed that the strategy’s performance in its initial three weeks would persist for a full year.
Furthermore, the SEC found that Titan violated the…
