Official announcements and legal documents from the SEC

SEC Charges TrustToken and TrueCoin with Investor Fraud, 99% of TrueUSD Reserves in Speculative Fund

Sep 24, 2024, 05:44 PM

The U.S. Securities and Exchange Commission (SEC) has charged crypto companies TrustToken and TrueCoin with defrauding investors regarding their stablecoin investment program, TrueUSD. The SEC alleges that 99% of TrueUSD reserves were invested in a speculative offshore fund, contrary to claims that the stablecoin was fully backed by U.S. dollars. The complaint also includes allegations of investment contracts and falsely marketing the investment opportunity as safe and trustworthy. TrustToken and TrueCoin have settled the charges without admitting or denying the allegations, agreeing to final judgments enjoining them from future violations.