TrueCoin and TrustToken fined by SEC
The SEC’s complaint accused the companies of misleadingly promoting their TrueUSD stablecoin and TrueFi decentralised finance platform as “safe investments.”
TrueCoin and TrustToken have settled charges with the SEC over an unregistered offering of investment contracts between November 2020 and April 2023. The companies promoted their TrueUSD stablecoin and decentralized finance platform TrueFi as safe investments, which the SEC later deemed misleading.
The SEC complaint, filed on 24 September, stressed the importance of proper company registration for investor protection. Despite this, some within the crypto industry, including former SEC staff, have criticised the agency’s approach, calling its regulatory tactics unclear and excessive. This case adds to the ongoing tension between the SEC and the crypto sector.
Without admitting wrongdoing, both companies agreed to pay a combined fine of $163,766, with TrueCoin facing an additional $340,930 in penalties. The crypto industry has spent over $7 billion in SEC fines since 2013, with penalties rising sharply in recent years.
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