Bloomberg: A considerable portion of TrueUSD’s reserves are invested in high-risk offshore funds

Bloomberg reported that a significant portion of TrueUSD's reserves were invested in high-risk offshore funds, which triggered charges from the U.S. Securities and Exchange Commission (SEC) against TrueCoin LLC and TrustToken Inc. The SEC believes that the companies' claims that the TrueUSD stablecoin is fully backed by the U.S. dollar or equivalent are false. The charges highlight transparency and trust issues in the cryptocurrency field, especially in terms of complex ownership structures and reserve management. Previously, TrueUSD's reserves were transferred to banks in the Bahamas and its ownership was transferred to an offshore entity called Techteryx Ltd. Such operations are not uncommon in the cryptocurrency field, but many people have not questioned these changes due to the industry's belief in decentralized and trustless systems. However, if the SEC's charges are true, this will be a classic case of fraud that is not limited to the cryptocurrency field, but will challenge the entire financial regulatory system.