TrustToken and TrueCoin Settle with SEC
The Securities and Exchange Commission has reached a settlement with TrustToken and TrueCoin for deceiving investors in relation to TrueUSD.
Under the settlement, both parties will pay $163,000 each, with TrueCoin also paying a disgorgement of $340,000.
They have not admitted or denied the SEC’s findings. According to the SEC’s press release, it is alleged that in March 2022, an offshore entity and TrueCoin invested over $500 million of the assets supposedly backing TUSD in a speculative fund.
Despite becoming aware of issues with redemption at the offshore fund in fall 2022, TrueCoin and TrustToken continued to mislead investors by portraying TUSD as backed one-for-one by US dollars.
The SEC’s complaint states that the defendants sold TUSD along with the promise of profitable opportunities.
