The U.S. Securities and Exchange Commission (SEC) has settled fraud charges against companies associated with Archblock and the TrueUSD (TUSD) stablecoin.

TrustToken and TrueCoin, now branded as Archblock, were accused of misrepresenting the collateral of TUSD and selling unregistered securities.

The companies agreed to pay fines of $163,766 each and to return nearly $400,000 in profits and interest.

The SEC alleged that the companies misled investors about the safety of their investments by claiming that TUSD was backed one-to-one by the dollar, while the funds were invested in a risky offshore fund.

The companies also agreed not to violate applicable securities laws in the future.