SEC charges TrustToken and TrueCoin for unregistered sales and misleading investors about TrueUSD's backing.

The SEC has charged TrustToken Inc. and TrueCoin LLC for allegedly defrauding investors in the TrueUSD (TUSD) stablecoin by conducting unregistered sales of investment contracts. The companies misled investors about TUSD's backing, claiming it was safe while a significant portion was invested in a risky offshore fund. They agreed to settle by each paying $163,766 in civil penalties, pending court approval. This case is part of the SEC's broader crackdown on cryptocurrency firms.

September 24, 2024
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