TrueCoin and TrustToken Settle with SEC Over TrueUSD Allegations

The U.S. Securities and Exchange Commission (SEC) has charged TrueCoin and TrustToken with defrauding investors through investment contracts involving TrueUSD (TUSD), an alleged stablecoin. The SEC's filing in the U.S. District Court for the Northern District of California claims that TrustToken developed and operated TrueFi, a lending protocol, while TrueCoin issued TUSD.

The alleged fraudulent activities occurred from November 2020 to April 2023. The SEC asserts that the companies falsely marketed TUSD as fully backed by U.S. dollars, despite investing significant reserves in a speculative fund. Both companies have agreed to settle without admitting or denying the allegations, with each paying civil penalties and additional financial penalties for TrueCoin.