TrueUSD certification suspended due to collateral concerns
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TrueUSD, the U.S. dollar-pegged stablecoin backed by Justin Sun, is facing difficulties with its underlying proof of reserves.
according to data LedgerLens, the real-time reserve balance dashboard displayed on TrueUSD’s official website, said that during the last reporting interval, the system received an API error or the pricing source was unresponsive and was unable to apply the USD value to the collateral assets at that point in time.
As a result, the system received an error from a third-party system that “caused the sum of liabilities to be greater than the sum of related assets.”
“Typically, in the historical operation of the system, balance pulls are triggered by temporary imbalances that occur during normal operations. However, balance pulls may also be triggered due to actual imbalances in liabilities and corresponding assets.”
Ledger lens
As of this writing, TrueUSD has yet to make a public statement on the matter.
This is not the first time TrueUSD has faced certification difficulties. In June 2023, the stablecoin temporarily stopped auto-attesting due to a balance discrepancy, just a week after the glitch was resolved.
It is understood that TrueUSD’s TUSD token-backed funds are distributed in multiple locations, including federally insured U.S. depository institutions, an undisclosed Hong Kong depository institution (formerly First Digital Trust), and an undisclosed Bahamian depository institution (formerly Capital Union Bank) and a Swiss depository institution. Depository institutions.
In October 2023, a security breach involving a third-party vendor exposed TrueUSD’s sensitive customer data, which the company learned about through TrueCoin, a former service provider responsible for the company’s banking, customer and product management. While the incident did not compromise TrueCoin’s internal IT infrastructure, it exposed certain customer information data, including names, email addresses, and phone numbers, affecting users who joined the platform between 2018 and 2019.
