Two crypto companies related to the TUSD stablecoin were charged with securities violations by the U.S. Securities and Exchange Commission
TrueCoin and TrustToken settled charges filed by the SEC, alleging unregistered offering and investment contract sales between November 2020 and April 2023. TrustToken created the decentralized finance lending platform TrueFi, allowing users to utilize TrueUSD (TUSD), a stablecoin that was issued by TrueCoin.
In a Sept. 24 complaint, the SEC stated that both companies used misleading marketing tactics to promote TUSD and TrueFi as “safe and trustworthy” investment vehicles. Jorge G. Tenreiro, the SEC’s acting chief of its Crypto Assets and Cyber Unit, emphasized that the case highlighted why company registration is critical to investor protection.
Crypto market participants, including former SEC staff like Dan Gallagher, now chief attorney at Robinhood Markets, have often challenged this rhetoric espoused by SEC officials.
Due to this conflict, ongoing legal battles have ensued, involving companies like Coinbase. Lawmakers have also petitioned the securities agency regarding its “regulation by enforcement” approach, and SEC commissioner Hester Peirce has described the regulator’s strategy as inefficient and confusing.
Without admitting or denying the charges, TrueCoin and TrustToken agreed to pay fines of $163,766. TrueCoin was also penalized with an additional disgorgement of $340,930.
The settlement adds to a growing list of SEC fines levied against the crypto industry. Since 2013, crypto businesses have paid the agency over $7 billion, and a study found that crypto fines have surged more than 3,000% in the past 12 months.
From: crypto.news
Crypto News
