TrueUSD attestation pauses amid concerns surrounding collateral

1 Mins read

Justin Sun-backed dollar-pegged stablecoin TrueUSD is facing difficulties with attestations for its underlying reserves.

According to data from LedgerLens, a real-time reserve balance dashboard displayed on the TrueUSD official website, during the last reporting interval the system received API errors or a non-response from the pricing source and was unable to apply a U.S. dollar value to the collateral assets for that point in time.

TrueUSD attestation pauses amid concerns surrounding collateral - 1
TUSD automated attestations | Source: TrueUSD

As a result, the system received errors from third-party systems “resulting in the sum total of liabilities being greater than the sum total of the relevant assets.”

“Commonly, over the historical operation of the system, the Balances ripcord is triggered by temporary imbalances seen in normal operations. However, the Balances ripcord can also be triggered due to an actual imbalance of liabilities and corresponding assets.”


At the time of writing, TrueUSD has made no public statements on the matter.

This is not the first instance of TrueUSD facing difficulties with attestations. In June 2023, the stablecoin temporarily halted its automated attestations due to balance discrepancies, just a week after grappling with glitches.

TrueUSD is understood to have funds supporting its TUSD tokens distributed across various locations, including federally insured U.S. depository institutions, an undisclosed Hong Kong depository institution (formerly First Digital Trust), an undisclosed Bahamian depository institution (formerly Capital Union Bank), and a Swiss depository institution.

In October 2023, a security breach involving a third-party vendor exposed sensitive client data at TrueUSD, which became aware of the incident through TrueCoin, its 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 disclosed certain client information data, including names, email addresses, and phone numbers, affecting those who had joined the platform between 2018 and 2019.


1409 posts

About author
Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
Related posts

Indonesia's presidential elections pose uncertainty for the thriving cryptocurrency industry

1 Mins read
Indonesia, has emerged as a formidable player in the global cryptocurrency space in recent years. However, the nation’s upcoming general elections in…

Understanding the Cryptocurrency Boom - Dogecoin Climbs Due to X Payment Integration, While Stellar and BNB Also Experience Growth

1 Mins read
The cryptocurrency market has been experiencing notable gains over the past few days. This is led by an unexpected and surprising spike…

Crypto Entrepreneur Charged with Defrauding Investors Out Of $150 Million Through Marketing Scheme

1 Mins read
Federal prosecutors have charged a German businessman with securities fraud, wire fraud and money laundering for allegedly scamming over 150 investors out…

🚀 Ailtra Crypto Bot Earned $8.9M Million in 7 Months with 0% Loss!

🚀 Ailtra generated $7.4 in 7 months only!

Unlock 20-75% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st March an AI Crypto Bot boasting 20%-75% monthly gains and $7.5M earnings in 7 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,000 spots are available in first phase – claim yours fast! 🔥 will not disclose your account information to any 3rd parties.