TrueUSD firms dodge fraud claims with SEC settlement
TrustToken and TrueCoin have reached a $700,000 settlement with the US Securities and Exchange Commission (SEC) after being accused of defrauding investors of stablecoin TrueUSD (TUSD). The SEC’s complaint, filed on Tuesday, alleges that the firms sent TUSD’s dollar backing to “a speculative and risky offshore commodity fund” and that after TrueUSD was acquired by Techteryx in late 2020, TrueCoin remained involved in the stablecoin’s operations until July 2023. During that period, the SEC believes the firms continued to insist that TUSD was backed “one-for-one by US dollars.” This settlement does not include TrueCoin and TrustToken admitting or denying the allegations contained in the complaint. Control of TrueUSD private keys transferred to Techteryx Read more: What’s up with TrueUSD and the rest of TrustToken’s stablecoins? “By the fall of 2022, TrueCoin and TrustToken became aware of redemption problems at the commodity fund,...
