SEC Settles With TUSD Issuer Over Fraud Claims

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• The SEC hasactually charged TrueCoin LLC and TrustToken Inc. for deceitful and unregistered sales of TrueUSD (TUSD) financialinvestment agreements
• The business apparently deceived financiers by incorrectly declaring that TUSD was totally backed by U.S. dollars, while much of the support was invested in a dangerous overseas fund
• TrueCoin and TrustToken have concurred to settle the charges, paying civil charges and disgorgement without confessing or rejecting the claims

The Securities and Exchange Commission (SEC) has settled scams charges versus TrueCoin LLC and TrustToken Inc. for deceptive financiers about the support of their stablecoin, TrueUSD (TUSD). According to the SEC, the 2 business marketed TUSD as a safe and fully-backed property, when in truth, they had invested a big part of the support funds into a speculative overseas financialinvestment. TrueCoin and TrustToken have concurred to pay charges and disgorgement as part of the settlement, though they have neither confessed nor rejected the charges.

Users Subjected to “Substantial, Undisclosed Risks”

From November 2020 to April 2023, TrueCoin and TrustToken promoted TUSD as a stablecoin, declaring it was backed one-for-one by U.S. dollars. However, the SEC’s problem declares that by March 2022, more than half a billion dollars in properties support TUSD hadactually been invested in a dangerous overseas fund.

By September 2024, 99% of the reserves apparently support TUS