The United States Securities and Exchange Commission (SEC) has charged TrueCoin and TrustToken, two crypto companies, for their fraudulent stablecoin investment program and unregistered offer and sale of securities. The SEC filed a complaint at the U.S. District Court for the Northern District of California and settled the charges against the firms, ordering them to pay a collective penalty of $700,000. The SEC accused TrustToken and TrueCoin of falsely representing their stablecoin, TrueUSD (TUSD), as fully backed by U.S. dollars (USD), when a significant portion of the funds had been invested in a risky offshore investment fund. The companies settled with the SEC and agreed to pay penalties. Some crypto projects, including Curve Finance, are considering removing TUSD from their list of collateral tokens following the SEC's actions.



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