The U.S. Securities and Exchange Commission (SEC) has filed charges against crypto companies TrustToken Inc. and TrueCoin LLC for allegedly defrauding investors and conducting unregistered sales of investment contracts involving the TrueUSD (CRYPTO: TUSD) stablecoin.
What Happened: According to the SEC’s complaint filed in the U.S. District Court for the Northern District of California, the companies engaged in fraudulent activities from November 2020 to April 2023.
The regulator alleges that TrueCoin, the issuer of TUSD, and TrustToken, the developer of the TrueFi lending protocol, misled investors about the backing of TUSD and the safety of their investment opportunities.
The SEC claims that despite marketing TUSD …
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