The U.S. Securities and Exchange Commission announced the settlement with Archblock and TrueUSD's related firms over accusations of misrepresenting the backing of the stablecoin, TUSD.
TrustToken and TrueCoin settled claims that they sold securities tied to TUSD without appropriate registration, misleading investors about the stablecoin's backing.
The SEC revealed that while TUSD was advertised as having one-to-one dollar reserves, the issuer was actually investing in a risky offshore commodity fund.
Under the settlement, TrueCoin will return nearly $400,000 in profits and interest, and both companies will pay fines of $163,766 each.
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