According to TechFlow, on September 27, Bloomberg reported that TrueUSD's reserves were invested in high-risk offshore funds, triggering charges by the U.S. Securities and Exchange Commission (SEC) against TrueCoin LLC and TrustToken Inc.
The SEC believes that the companies’ claims that the TrueUSD stablecoin is fully backed by the U.S. dollar or its equivalent are false. The allegations highlight transparency and trust issues in the cryptocurrency space.
TrueUSD’s reserves were transferred to a bank in the Bahamas and the ownership was transferred to Techteryx Ltd. Expert Austin Campbell pointed out that this behavior was a serious violation of investor trust.
