2 hours ago
The US Securities and Exchange Commission (SEC) has charged TrueCoin and TrustToken with fraudulent and unregistered income of concern contracts involving the TrueUSD (TUSD) stablecoin, and lying astir its backing, according to a Sept. 24 statement.
TrueCoin and TrustToken agreed to settee the SEC’s charges without admitting oregon denying fault. They besides consented to injunctions and $163,766 civilian penalties each. TrueCoin volition wage an further $340,930 successful disgorgement positive $31,538 successful interest, pending tribunal approval.
SEC complaint
The SEC’s ailment alleged that TrueCoin and TrustToken reportedly marketed TUSD arsenic afloat backed by US dollars oregon equivalents portion a important information was invested successful a risky offshore fund.
By March 2022, implicit fractional a cardinal dollars of TUSD-backing assets were invested successful the speculative fund. Despite consciousness of redemption issues by the Fall of 2022, the companies continued to misrepresent TUSD arsenic one-to-one dollar-backed.
The regulator stated that 99% of TUSD reserves were successful the speculative money arsenic of September 2024. It added that some entities mismanaged investors’ funds by searching for profits for themselves, which exposed users to “substantial, undisclosed risks done misrepresentations astir the information of the investment.”
Additionally, the SEC highlighted that from November 2020 to April 2023, the companies engaged successful unregistered offers and income of TUSD concern contracts and profit-making opportunities connected TrueFi, a decentralized wealth marketplace wherever users tin lend stablecoins arsenic recognition lines to companies to gain interest.
TrueUSD presently has a marketplace headdress of astir $494 cardinal and is experiencing a flimsy de-peg pursuing the news.
The station SEC charges and settles with TrueCoin, TrustToken implicit fraudulent TrueUSD claims appeared archetypal connected CryptoSlate.
English (US) 