TRON

TrueUSD

The U.S. Securities and Exchange Commission (SEC) has determined that TrueCoin LLC and TrustToken Inc., the developers of the <a href="https://optimisus.com/news/crypto-news/binance-to-remove-trading-pairs-that-include-trueusd-tusd-of-justin-sun/" rel="noopener noreferrer nofollow">TrueUSD (TUSD) stablecoin</a>, allocated nearly all of their reserves to a high-risk offshore fund.The companies inaccurately asserted that TUSD was entirely backed by U.S. dollars, deceiving investors on the security of their capital. Between November 2020 and April 2023, they marketed TUSD via its TrueFi lending platform, promoting it as a secure, dollar-backed investment.Nonetheless, these reserves were allocated to speculative investments that subjected investors to considerable risks. By March 2022, more than $500 million allocated to support TUSD had been redirected to this speculative fund.As of September 2024, 99% of <a href="https://optimisus.com/press-releases/tusd-readies-operation-plan-for-international-transition/" rel="noopener noreferrer nofollow">TUSD&#39;s reserves</a> were allocated to this speculative fund. Both firms consented to a settlement, incurring penalties and prohibited from future violations of securities legislation.TrueCoin will disburse $340,930 in disgorgement, along with an additional $31,538 in interest, subject to court approval. Each company has consented to pay civil fines amounting to $163,766.

The SEC reveals that nearly all of TrueUSD’s reserves were invested in a risky offshore fund

Optimisus

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