Key Takeaways:
- Binance stablecoin TUSD is in trouble again.
- The depeg was confined to Binance.US, but the damage to reputation was done.
- TUSD also has suspicious connections to discredited auditors.
YEREVAN (CoinChapter.com) – True USD (TUSD), Binance’s new stablecoin project after the BUSD fiasco, is in headlines again after a fresh depeg incident. The token lost parity with the US dollar, declining 10% to $0.9 on Binance.US.
Notably, Binance.US was the only platform affected, including Binance. An anonymous entity @ParrotCapital spread the FUD and got immediately criticized for considering Binance.US’s critically low liquidity as a baseline for a depeg announcement.
Meanwhile, the incident followed an audit scandal as the stablecoin faced controversy over its alleged exposure to Armanino.
Is True USD involved with The Network Firm and Prime Trust or not?
In detail, Armanino was the audit firm that worked closely with the now-imploded FTX exchange. However, after the scandal, Armanino rebranded itself to “The Network Firm” and audited TUSD, which is receiving backlash from the community.
Financial analyst Adam Cochran also voiced his suspicions, calling The Network Firm supporters of the “biggest grift in history.” Additionally, he noted that the True USD account had been silent for several days.
Their account @tusdio last posted they had multiple rails on June 23rd — the same day they sent an email to users saying mint and redeem was paused due to Prime Trust.
read the tweet.
Notably, Nevada’s Financial Institutions Division (FID) has taken control of crypto custodian Prime Trust, halted its operations, and is seeking a receiver for the firm, according to an announcement made by the regulator on June 27.
Cochran also asserted that Prime Trust now has “$150 million in liabilities,” which is not enough to “cover the amount of TUSD.”
I put up a $1k bounty asking for anyone to prove they could mint/redeem. Only one person tried to claim it and showed me a tx 10 days before the pause that was a Binance withdraw. No other people could claim.
said the analyst.
Also read: Bitcoin Miners’ Revenue To Exchange Reaches New ATH As BTC Leads Weekly Fund Inflows.
