ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has charged TrueCoin LLC and TrustToken Inc., the companies responsible for the TrueUSD (TUSD) stablecoin, for allegedly selling fraudulent and unregistered investment contracts.The regulator stated that TrueUSD is a "so-called stablecoin" and accused these companies of making false marketing claims regarding the security and backing of the crypto asset pegged to the dollar. The two companies have reached a settlement without admitting or denying the charges and will jointly pay approximately $700,000 in fines.Jorge G. Tenreiro, acting head of the SEC's Crypto Assets and Cyber Unit, stated in a release: "TrueCoin and TrustToken exposed investors to a significant amount of undisclosed risks through false statements about the safety of their investments for their own benefit. This case is a typical example of why registration is important, as investors still lack the key information needed to make fully informed decisions regarding such products."However, the SEC pointed out that TrueCoin and TrustToken made false statements regarding the backing of TUSD. These companies allocated a "significant portion" of TUSD's backing to a "speculative and high-risk offshore investment fund for additional returns."