The United States Securities and Exchange Commission unveiled charges against two crypto companies, TrueCoin and TrustToken, for their fraudulent stablecoin investment program and unregistered offer and sale of securities.by the agency, the SEC filed the complaint at the U.S. District Court for the Northern District of California and has settled the charges against the firms, ordering them to pay a collective penalty of $700,000.
The agency alleged that TrustToken and TrueCoin falsely touted TUSD as an asset fully backed by U.S. dollars , whereas a massive portion of the funds backing the token had been invested in a speculative scheme. The operators of the TrueFi protocol used the USD meant to beBy the time the creators of TrueFi sold TUSD operations to an offshore company in March 2022, they had invested more than $500 million of the funds meant to back the stablecoin.