According to TechFlow, on September 27, Bloomberg reported that a considerable portion of TrueUSD's reserves were invested in high-risk offshore funds, which triggered the U.S. Securities and Exchange Commission (SEC) to charge TrueCoin LLC and TrustToken Inc. The SEC believes that these companies' statements that the TrueUSD stablecoin is fully backed by the U.S. dollar or equivalent currency are false. The allegation highlights the transparency and trust issues in the cryptocurrency field, especially in terms of complex ownership structures and reserve management.
Previously, TrueUSD's reserves were transferred to banks in the Bahamas and its ownership was transferred to an offshore entity called Techteryx Ltd. Such operations are not uncommon in the cryptocurrency field, but many people have not questioned these changes due to the industry's belief in decentralization and trustless systems. However, if the SEC's allegations are true, this will be a classic case of fraud that is not limited to the cryptocurrency field, but challenges the entire financial regulatory system.
Experts such as Austin Campbell stressed that this behavior seriously violated investor trust and reflected the potential risks and problems in the cryptocurrency field.
