Transparency isn’t a gimmick — it’s crypto’s most valuable asset
The post Transparency isn’t a gimmick — it’s crypto’s most valuable asset appeared on BitcoinEthereumNews.com.
There’s nearly half a billion dollars in TrueUSD circulating through the crypto ecosystem right now. And if what the Securities and Exchange Commission alleges is true, practically none of it is properly backed. That includes pairs on Binance, Bybit, Gate.io and Bitget, along with dozens of other exchanges. We learned a lot about the alleged inner workings of TrueUSD overnight. It apparently speed-ran the gauntlet of everything you shouldn’t do when managing a stablecoin. Phony attestation reports. Opaque ownership structures. Secretly investing the assets backing the token in risky, illiquid assets. All of this is “alleged” because we’re again left with an ambiguous SEC settlement that neither confirmed nor denied the charges. Very helpful, much investor protection. Read more: TrustToken, TrueCoin settle with SEC over TUSD allegations Regardless, what’s entirely frustrating is that going by the timeline laid out in the SEC’s complaint, the showrunners behind TrueUSD had (allegedly) been fooling around with customer deposits behind their backs at every one of the coin’s major milestones. What the SEC calls the “commodity fund” — which (allegedly) took dollars that had been sent to TrueUSD bank accounts in return for TUSD — starting in March 2020 (allegedly) invested in “trade finance, structured trade, export finance, import finance, supply chain financing and project financing of entities.” At the same time, the team (allegedly) claimed over and over that every TUSD was backed 1-to-1 with US dollars, or at other times, cash and cash equivalents. FDUSD, which was a former treasury custodian for TrueUSD, is now Binance’s stablecoin of choice In (alleged) reality, the “commodity fund” was ramping up its allocations (read: siphoning of user funds), to the point that 99% of the assets backing TUSD as of this month were really sitting in the illiquid commodity fund. The period of time in…
Filed under: News - @ September 25, 2024 5:28 pm