# Blockchain News đ
According to Bloomberg, a considerable portion of TrueUSD's reserves were invested in high-risk offshore funds, triggering charges from the U.S. Securities and Exchange Commission (SEC) against TrueCoin LLC and TrustToken Inc. The SEC believes that the companies' statements that the TrueUSD stablecoin is fully backed by the U.S. dollar or equivalent currency are false.
The allegation highlights 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 taken over by an offshore entity called Techteryx Ltd.
If the SEC's allegations are true, this will be a classic case of fraud and a challenge to the entire financial regulatory system. What do you think? Welcome to discuss in the comments section!
