TrustToken and TrueCoin Settle Charges with SEC over TrueUSD

According to a statement released by the US Securities and Exchange Commission on Tuesday, Archbock (formerly TrustToken and TrueCoin) have settled allegations that they misrepresented the backing of their stablecoin, TrueUSD (TUSD), and sold securities linked to it without proper registration.

The California-based companies have agreed to pay fines of $163,766 each and TrueCoin will return almost $400,000 in profits and interest pending approval from a federal court.

They are also prohibited from violating securities laws in the future. TrueCoin was the original issuer of TUSD, which was eventually acquired by offshore firm Techteryx and currently has a market cap of almost five hundred million dollars.

TrustToken operated a lending protocol called TrueFi, which the SEC says was involved in the unregistered offer and sale of TUSD securities. The SEC also alleges that the companies remained closely connected to TUSD even after selling it to the other issuer.