TrustToken and TrueCoin, creators of the TrueUSD stablecoin, recently settled with the SEC regarding accusations of fraudulent sales of investment contracts. The companies agreed to pay $700,000 without admitting fault. The SEC claimed that TrueCoin and TrustToken unlawfully sold TUSD as investment contracts, falsely representing them as fully backed by US dollars when a significant portion was invested in a speculative fund. The settlement includes civil penalties and disgorgement for both companies, along with injunctions to prevent future violations. This settlement reflects the increasing regulatory scrutiny in the crypto industry, with the SEC collecting record fines in recent years. Despite a slight de-peg in TrueUSD following the news, its market cap remains stable. The settlement also involves other firms like Mango DAO and Blockworks Foundation. The article emphasizes the importance of conducting thorough research before engaging in cryptocurrency trading. Read more AI-generated news on: https://app.chaingpt.org/news

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