Justin Sun-backed dollar-pegged stablecoin TrueUSD is struggling to prove its underlying reserves.
According to data from LedgerLens, a real-time reserve balance dashboard displayed on the TrueUSD official website, during the last reporting period the system was unable to apply US dollar values due to receiving API errors or unresponsiveness from price sources. This is the collateral asset at that time.
As a result, the system received an error from a third-party system: “Total liabilities are greater than total associated assets.”
“Normally, during the past operation of the system, Balances Ripcord are caused by temporary imbalances that appear in normal operation. However, Balances Ripcord may also be triggered by an imbalance between actual liabilities and their assets.”
LedgerLens
As of this writing, TrueUSD has not made a public statement on this matter.
This is not the first time TrueUSD has faced proof issues. In June 2023, the stablecoin temporarily suspended automatic proof due to balance inconsistencies, just a week after the flaw was resolved.
TrueUSD is a federally insured U.S. depository institution, an undisclosed Hong Kong depository institution (formerly First Digital Trust), an undisclosed Bahamas depository institution (formerly Capital Union Bank), and a Swiss depository institution.
In October 2023, a security breach involving a third-party vendor exposed TrueUSD’s sensitive customer data, of which TrueUSD was made aware through TrueCoin, the company’s former service provider responsible for banking, customer and product management. I did it. Although the incident did not compromise TrueCoin’s internal IT infrastructure, it did disclose certain customer information data, including names, email addresses, and phone numbers, impacting people who signed up for the platform between 2018 and 2019.