TechFlow News, on September 25, according to The Block, the U.S. Securities and Exchange Commission (SEC) announced a settlement with TrueCoin LLC and TrustToken Inc. over the sale of the TrueUSD (TUSD) stablecoin. TrueCoin was formerly the issuer of TUSD, while TrustToken developed the lending protocol TrueFi. According to the SEC's statement, neither company admitted nor denied the allegations, but each agreed to pay a civil penalty of $163,766. In addition, TrueCoin agreed to disgorge $340,930 in illicit gains.
The SEC stated that from November 2020 to April 2023, TrueCoin and TrustToken were involved in "the unregistered offer and sale of investment contracts through the crypto asset TUSD, as well as profit-linked opportunities related to TrueUSD on the TrueFi platform." The SEC also accused both companies of "falsely marketing these investment opportunities as safe and secure," claiming they were fully backed by U.S. dollars or equivalent assets, while in reality, most funds were invested in "speculative, high-risk offshore investment funds to generate additional returns."
