SEC Settles With TUSD Issuers
The U.S. Securities and Exchange Commission (SEC) settled charges against California-based companies TrustToken and TrueCoin, which operate under the Archblock brand, for selling unregistered securities and providing misleading information regarding the reserves backing their stablecoin, TrueUSD (TUSD).
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The U.S. Securities and Exchange Commission (SEC) settled charges against California-based companies TrustToken and TrueCoin, which operate under the Archblock brand, for selling unregistered securities and providing misleading information regarding the reserves backing their stablecoin, TrueUSD (TUSD).
Although the companies did not admit to or deny the allegations, the SEC accused them of investing TUSD reserves in a “speculative and risky offshore commodity fund.” Under the terms of the settlement, which is subject to court approval, both companies will pay a fine of $163,766. Additionally, TrueCoin will return approximately $400,000 in interest profits earned.
TrueCoin was also at least partly responsible for the design and content of the TrustToken website, which included links to buy TUSD and invest in TrueFi,
the SEC stated.
TrueFi is a lending protocol developed and managed by TrustToken. The SEC noted that at some point, over 13% of TUSD was used on the TrueFi platform to generate interest. The regulators also confirmed that both companies were aware of the stablecoin's redemption issues in 2022.
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