TrustToken TrueCoin indicted on fraud charges by SEC; civil settlement reached

The U.S. Securities and Exchange Commission (SEC) announced on its official website that it has filed charges against TrustToken and TrueCoin for fraud.
The two companies are the issuer of the dollar-backed stablecoin TUSD and the developer of TrueFi (TRU).
In relation to this, the SEC stated that "99% of the TUSD reserves are invested in speculative offshore funds" and that "the defendants made false representations about the safety of the investments."
"The company generated profits by exposing investors to undisclosed risks through its investments," the report said. "Investors were unable to make fully informed decisions and were unable to obtain important information prior to investing."
"Accordingly, the defendants did not register TUSD-related investment contracts with the SEC and are therefore subject to charges of 'sale of unregistered securities.'"
Meanwhile, TrueCoin and TrustToken have neither admitted nor denied the allegations, but have filed a lawsuit against the company, filing a lawsuit against the company against 163,733
In addition to agreeing to pay a civil penalty of $23.51 million, TrueCoin has agreed to pay the SEC $340,930 in prejudgment interest, including $31,538 in prejudgment interest.
The settlement is subject to court approval and will be finalized.