The US Securities and Exchange Commission (SEC) is known for coming down hard on the digital assets industry, including accusing several firms of trading “unregistered securities.” This time around, the regulator has charged a crypto fund with misleading investors, marking the “first violation of the SEC’s amended marketing rule.”
Crypto Fund Promised Investors 2,700% Returns
In a release dated August 21, the SEC charged a New York-based FinTech firm Titan Global Capital Management, for “misrepresenting hypothetical performance of investments.” According to the regulator, the hypothetical performance metrics which the company used in advertising were misleading.
Titan is said to have offered investment services to retail investors through its mobile trading app between August 2021 to October 2022. As part of its advertising campaigns, it misrepresented the fund’s hypothetical performance and promised investors an…
