According to the SEC's complaint, TrueCoin and TrustToken marketed TUSD as a fully-backed stablecoin, claiming it was supported by U.S. dollars. However, the SEC alleged that these representations were misleading, as the companies failed to provide adequate disclosures regarding the risks associated with their investment offerings.
https://today.westlaw.com/Document/I4e802d577b8311efb5eab7c3554138a0/View/FullText.html?contextData=(sc.Default)&transitionType=Default