TrueCoin and TrustToken, the pair behind the TUSD stablecoin, settled with the SEC and agreed to pay $164k each and an additional $341k in disgorgement for TrueCoin.

The SEC alleged that they misled investors by falsely claiming that TUSD is backed one-for-one by the U.S. dollar, while they actually allocated a substantial portion of TUSD’s backing to speculative and risky offshore investments.