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TrueCoin and TrustToken
TrustToken is the developer of the lending protocol TrueFi on which TrueCoin issued the stablecoin TrueUSD (TUSD). The entities launched TUSD in 2018; the SEC accused them of engaging in the unregistered offer and sale of profit-making opportunities and investment contracts in the form of the stablecoin from November 2020 until April 2023.

TrustToken claims TUSD is the first USD-pegged stablecoin to release daily attestations for its underlying reserves by independent third-party institutions, but the SEC’s complaint says otherwise.

The agency alleged that TrustToken and TrueCoin falsely touted TUSD as an asset fully backed by U.S. dollars (USD), whereas a massive portion of the funds backing the token had been invested in a speculative scheme. The operators of the TrueFi protocol used the USD meant to be backing TUSD to bet on a risky offshore investment fund in an attempt to earn additional returns. @shahinm222 @zohi @artam @nftdan @hosna @mersana1398  @susanem @alitoork