DeFi Daily News
Friday, May 9, 2025
Advertisement
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
No Result
View All Result
Home Markets Crypto Market

TrustToken and TrueCoin Settle with SEC Over TUSD Case, Neither Admitting Nor Denying Fault

Liam 'Akiba' Wright by Liam 'Akiba' Wright
September 30, 2024
in Crypto Market
0 0
0
TrustToken and TrueCoin Settle with SEC Over TUSD Case, Neither Admitting Nor Denying Fault
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on Telegram
Listen to this article

Receive, Manage & Grow Your Crypto Investments With Brighty

In a recent turn of events that underscores the burgeoning intersection of traditional financial regulatory frameworks and the digital asset ecosystem, TrustToken and TrueCoin, the progenitors of the TrueUSD (TUSD) stablecoin, found themselves entangled in legal scrutiny. The culmination of this scrutiny was a notable settlement with the U.S. Securities and Exchange Commission (SEC), a saga that unfolded over allegations tied to fraudulent and unregistered sales of what were deemed investment contracts.

The conclusion of this legal whirlwind saw the entities agreeing to a settlement where they would part with a combined total of $700,000, doled out in penalties and disgorgement, albeit without the overt admittance or denial of the SEC’s underlying charges. This settlement not only marks a pivotal moment in regulatory oversight but also serves as a significant waypoint in the journey of TrustToken and TrueCoin.

In a statement provided exclusively to CryptoSlate, representatives from both TrustToken and TrueCoin shared their perspective, stating, “TrustToken and TrueCoin have agreed to a no-admit/no-deny settlement with the US Securities and Exchange Commission, resolving an investigation related to TrueUSD and TrueFi.” They further elucidated their rationale for this decision, suggesting that, “While we were prepared to defend our position, we ultimately decided that avoiding the burden and distraction of litigation is in our best interest, allowing us to focus on the exciting business opportunities ahead.”

This controversy traces back to assertions by the SEC in a complaint lodged at the US District Court for the Northern District of California. The regulatory body alleged that from November 2020 to April 2023, TrustToken and TrueCoin partook in the unregistered offers and sales of TUSD as investment contracts via their TrueFi lending protocol. More critically, the SEC pointed to deceptive marketing strategies, accusing the companies of falsely claiming that TUSD was fully backed by US dollars or equivalents. This, while a significant fraction of the assets were purportedly funneled into a speculative offshore fund.

By March 2022, it was estimated that over half a billion dollars of TUSD’s backing assets were invested in this speculative endeavor. The SEC’s complaint includes startling revelations that by September 2024, a staggering 99% of the reserves earmarked as TUSD backing were invested in this speculative fund, posing substantial and undisclosed risks to investors.

Jorge G. Tenreiro, Acting Chief of the SEC’s Crypto Assets & Cyber Unit, underscored the quintessential role of registration in safeguarding investors, stating, “This case is a prime example of why registration matters, as investors in these products continue to be deprived of the key information needed to make fully informed decisions.”

As part of the reached settlement, TrustToken and TrueCoin consented to each pay civil penalties to the tune of $163,766. Additionally, TrueCoin was tasked with disgorging $340,930 alongside $31,538 in prejudgment interest. Furthermore, both entities acquiesced to injunctions aimed at forestalling future violations of federal securities laws.

This settlement unfolds against the backdrop of increased regulatory vigilance across the cryptocurrency sector. The year 2024 saw the SEC amassing a record $4.68 billion in fines from the crypto sector, reflecting a significant uptick from $3.9 billion in 2023. This regulatory rigor signals an epoch of heightened scrutiny and compliance mandates for crypto enterprises moving forward.

Subsequent to the announcement of the settlement, the TrueUSD witnessed a peripheral de-pegging event, with its market capitalization teetering at nearly $494 million at the time of the report, subsequently marginally climbing to $495 million. The stability of the peg was briefly regained over $0.999 on September 27, only to wobble to $0.98 over the following 24 hours. Despite these fluctuations, it is noteworthy that the current valuations fall within the seen ranges over the past six months, suggesting a semblance of resilience amidst the legal upheavals.

For more trending news articles like this, visit DeFi Daily News.

Conclusion

In an ever-evolving digital finance landscape, the settlement between TrustToken, TrueCoin, and the SEC serves as a compelling narrative, illustrating the intricate dance between innovation and regulation. While the favorable resolution of the case allows these companies to pivot back to their growth trajectories and business innovations, it also highlights the paramount importance of compliance and transparency in the realm of digital assets. As the crypto market continues to mature, this episode emphasizes the essential balance between fostering technological advancements and ensuring investor protection, a theme likely to recur as the sector evolves.

Entertainingly, the world of crypto never ceases to offer its share of drama, innovation, and, at times, cautionary tales. The TrustToken and TrueCoin saga offers a dash of all three. Whether it’s navigating legal challenges or pioneering new financial paradigms, the crypto narrative continues to be as riveting as ever. With regulatory landscapes shifting beneath its feet, the crypto world treads forward, underscored by a complex blend of resilience, innovation, and an unwavering drive toward the future. And for those captivated by this saga, the unfolding chapters promise nothing short of a rollercoaster ride through the highs and lows of digital finance.



Source link

Tags: AdmittingCaseDenyingFaultSECsettleTrueCoinTrustTokenTUSD
ShareTweetShare
Previous Post

Is Binance cracking down on cryptocurrency scams in India? – Metaverseplanet.net

Next Post

Introducing Orion by Meta: The Next Generation of Smart Glasses – Metaverseplanet.net

Next Post
Introducing Orion by Meta: The Next Generation of Smart Glasses – Metaverseplanet.net

Introducing Orion by Meta: The Next Generation of Smart Glasses - Metaverseplanet.net

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
  • Trending
  • Comments
  • Latest
rewrite this title with good SEO Best Crypto Presales Tapping Into the Stablecoin Boom

rewrite this title with good SEO Best Crypto Presales Tapping Into the Stablecoin Boom

April 6, 2025
rewrite this title Gate Dubai Secures Full VARA VASP Licence for Crypto Exchange Services

rewrite this title Gate Dubai Secures Full VARA VASP Licence for Crypto Exchange Services

April 29, 2025
Setting Up OpBNB RPC Nodes: Step-by-Step Guide to Creating an opBNB Node for Free Using Moralis Web3 API

Setting Up OpBNB RPC Nodes: Step-by-Step Guide to Creating an opBNB Node for Free Using Moralis Web3 API

June 27, 2024
Kintsu Raises M in Seed Funding to Develop Monad-Based Liquid Staking Protocol — NFTgators

Kintsu Raises $4M in Seed Funding to Develop Monad-Based Liquid Staking Protocol — NFTgators

July 25, 2024
rewrite this title and make it good for SEO ZKsync Launches Ingite Program with M in DeFi Incentives – NFTgators

rewrite this title and make it good for SEO ZKsync Launches Ingite Program with $60M in DeFi Incentives – NFTgators

January 7, 2025
rewrite this title Manchester City frontrunners in potential Gibbs-White race – Soccer News

rewrite this title Manchester City frontrunners in potential Gibbs-White race – Soccer News

April 19, 2025
rewrite this title with good SEO Prosecution In Samourai Wallet Case Affirms It Did Not Violate The Brady Rule

rewrite this title with good SEO Prosecution In Samourai Wallet Case Affirms It Did Not Violate The Brady Rule

May 9, 2025
rewrite this title *RARE* Wonderfold W1 Original 2 Seater Stroller Wagon only 9.94 shipped (Reg. 0!)

rewrite this title *RARE* Wonderfold W1 Original 2 Seater Stroller Wagon only $199.94 shipped (Reg. $290!)

May 9, 2025
rewrite this title Recall Roundup: Beans and Tomatoes Pulled From Shelves This Week

rewrite this title Recall Roundup: Beans and Tomatoes Pulled From Shelves This Week

May 9, 2025
rewrite this title NCAA analysts pick best starting 5 fantasy draft feat. AJ Dybantsa, Cameron Boozer and more with Rick Pitino and Kelvin Sampson as coaches

rewrite this title NCAA analysts pick best starting 5 fantasy draft feat. AJ Dybantsa, Cameron Boozer and more with Rick Pitino and Kelvin Sampson as coaches

May 9, 2025
rewrite this title Magnolia Takes Nicolas Cage, FKA Twigs & Noah Jupe Young Jesus Christ Pic ‘The Carpenter’s Son’ – Cannes

rewrite this title Magnolia Takes Nicolas Cage, FKA Twigs & Noah Jupe Young Jesus Christ Pic ‘The Carpenter’s Son’ – Cannes

May 9, 2025
rewrite this title IPO Alert: eToro Group set to go public. Here’s what you need to know | AlphaStreet

rewrite this title IPO Alert: eToro Group set to go public. Here’s what you need to know | AlphaStreet

May 9, 2025
DeFi Daily

Stay updated with DeFi Daily, your trusted source for the latest news, insights, and analysis in finance and cryptocurrency. Explore breaking news, expert analysis, market data, and educational resources to navigate the world of decentralized finance.

  • About Us
  • Blogs
  • DeFi-IRA | Learn More.
  • Advertise with Us
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.