The Securities and Exchange Commission (SEC) has accused TrueCoin and TrustToken of deceiving investors and exposing them to undisclosed risks. According to Jorge G. Tenreiro, acting chief of the SEC’s Crypto Assets & Cyber Unit, the companies misrepresented the safety of the investment in order to profit for themselves.
This case highlights the importance of registration, as investors were allegedly deprived of key information needed to make informed decisions about their investments. The SEC’s statement serves as a warning to other companies in the crypto space that misleading investors will not be tolerated.
