The SEC has announced it has reached a settlement with TrueCoin LLC and TrustToken Inc. on charges related to the sale of the TrueUSD stablecoin.
TrueCoin, issuer of TrueUSD, and TrustToken, developer of TrueFi, engaged in the unregistered offer and sale of investment contracts, according to the SEC.
Without admitting or denying the allegations, both companies have agreed to pay $163,766 in fines, while TrueCoin has also agreed to pay $340,930 in disgorgement.
The SEC found that from November 2020 through April 2023, TrueCoin and TrustToken marketed TrueUSD as a safe and fully-backed investment, when in fact a significant portion of the assets were invested in a risky offshore fund.