TrustToken and TrueCoin settle with the SEC over charges of defrauding TrueUSD (TUSD) investors.
The SEC alleged the companies misled investors about TUSD’s backing and invested reserves in a high-risk fund.
TUSD de-pegged from the US dollar in early 2024, following Binance’s removal of the stablecoin from its Launchpools.
The Securities and Exchange Commission (SEC) has settled charges it had leveled against Trust Token and TrueCoin, the California-based companies accused of defrauding users with the TrueUSD (TUSD) stablecoin.
Both companies have agreed to pay $163,766 each in fines, with TrueCoin also paying a disgorgement of $340,000 and $31,538 in interest.
TrustToken and TrueCoin Sued by SEC
The SEC charged TrustToken and TrueCoin for allegedly misleading investors by claiming that TUSD was pegged to US dollars or equivalents, when in fact, a major portion of the assets were actually invested in a high-risk offshore fund.
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