The US Securities and Exchange Commission charged TrueCoin and TrustToken with fraud related to TrueUSD: the companies agreed to fines and restitution after using offshore funds

The SEC has announced settled charges against TrueCoin LLC and TrustToken Inc. for fraudulent and unregistered sales of investment contracts involving TrueUSD (TUSD). According to the SEC, from November 2020 to April 2023, TrueCoin and TrustToken falsely marketed TUSD as fully backed by U.S. dollars, when in reality, a significant portion of the backing assets were invested in a speculative offshore fund. By September 2024, 99% of the reserves backing TUSD were tied up in this risky fund. Both companies agreed to settle by paying civil penalties and disgorgements without admitting or denying the allegations, pending court approval. The investigation is ongoing.