The Securities and Exchange Commission (SEC) has settled with TrustToken and TrueCoin, previous operators of TrueUSD (TUSD), over allegations that they invested the backing for the stablecoin in a speculative and risky offshore commodity fund. The fund, offered by First Digital Trust in Hong Kong, supposedly held more than 99% of the assets backing TUSD. TrueCoin and TrustToken were allegedly aware of redemption issues at the fund in 2022. The settlement did not include Techteryx, the current owner of TrueUSD. An attestation for TrueUSD shows that approximately 99.7% of the reserves are still held at First Digital Trust. The attestation does not examine the fair market value of the investments within the fund. The reserves for TUSD are currently approximately $502 million held at First Digital Trust and approximately $1 million in cash. TrueUSD did not immediately respond to inquiries about its current investment fund.



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