The SEC settled with TrustToken and TrueCoin for misleading investors about TrueUSD’s (TUSD) reserve backing.
By September 2024, 99% of TUSD’s backing was invested in a risky offshore fund, contrary to claims.
The Securities and Exchange Commission (SEC) has struck a settlement with crypto firms TrustToken and TrueCoin, who were accused of deceiving investors about the stablecoin TrueUSD (TUSD).
According to the SEC, by September 2024, about 99% of the reserves that were meant to underpin the TUSD had been put in a speculative offshore fund.
This disclosure happened despite the corporations’ previous statements that the stablecoin was completely backed one-to-one by US dollars, raising severe concerns about the transparency and risk exposure of these investments.
Just In: #SEC Charges TrustToken and TrueCoin with Investor Fraud Over Stablecoin Programs. #cryptocurrency pic.twitter.com/yRlcewtefI
— Anup Dhungana (@CryptoAnup) September 24, 2024
TrustToken and TrueCoin Misled In
