The SEC has accused TrueCoin LLC and TrustToken Inc. of defrauding investors by falsely marketing the TrueUSD (TUSD) stablecoin as fully backed by U.S. dollars, despite investing up to 99% of TUSD's assets in a speculative fund by September 2024. The SEC also alleged that the companies offered unlicensed investment contracts via the TrueFi platform. Both firms settled the charges without admitting guilt, paying penalties and disgorgement. TUSD, which depegged multiple times in 2023, has seen a significant market cap drop from its 2023 peak. Allegations involving controversial crypto figure Justin Sun's secret ownership of TUSD and potential market manipulation have further complicated the case, raising concerns about Sun’s involvement in other projects, including Wrapped Bitcoin (WBTC). Source: The Defiant
