TrueUSD Supporters Address SECs Allegations Against the SoCalled Stablecoin

Coinworld reports:
The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has charged TrueCoin LLC and TrustToken Inc., the two companies behind the stablecoin TrueUSD (TUSD), with fraud and unregistered sales of investment contracts.
The regulatory agency referred to TrueUSD as a “so-called stablecoin” and accused the companies of making false marketing statements about the security and backing of the cryptocurrency assets tied to the U.S. dollar. Both companies settled the charges without admitting or denying them and will jointly pay a fine of approximately $700,000 as part of the agreement.
“TrueCoin and TrustToken profited at the expense of investors by making false statements about the safety of their investments,” said Jorge G. Tenreiro, the SEC’s Director of the Division of Enforcement’s cryptocurrency division, in a press release. “This case is a good example of why registration is important, as investors in these products continue to be deprived of key information necessary to make fully informed decisions.”
Editor’s note: This story is developing and will be updated with more information.