TUSD holders lost the opportunity to cash out stablecoin

Cryptocurrency investors holding funds in TUSD received a notification about the inability to cash out the stablecoin

TrustToken, which issues trueUSD (TUSD), has curtailed the ability to convert stablecoin into the US dollar due to problems with the Prime Trust depository. This is reported by stablecoin holders on Twitter, citing an email from the company.

According to a screenshot of the email, Prime Trust has stopped deposits and account payments. In addition to TUSD, stablecoin holders lost the opportunity to cash out other products from TrustToken like TAUD, TCAD and TGBP through Prime Trust.

The TrueUSD team on Twitter did not comment on the suspension of TUSD conversions through Prime Trust. Instead, they said that the company continues to fulfill the duties of cashing out stablecoin through other providers.

It is not clear which providers we are talking about. However, it is unlikely that TUSD holders in Prime Trust will be able to convert their investments through other TrustToken partners. How much TUSD was frozen due to problems in the Prime Trust, the issuer of the stablecoin did not specify.

Against the backdrop of problems with TUSD, the Binance cryptocurrency exchange has removed commissions in stablecoin trading pairs. At the same time, the trading platform previously refused to continue the same practice around bitcoin (BTC). The decision to trade commission-free around TUSD may be due to the excessive centralization of TUSD on the exchange.

According to analytics firm Arkham Intelligence, about 90% of the total TUSD supply is stored on Binance wallets. It is unclear whether the exchange will allow the withdrawal of all TUSD in the event of a massive runout of stablecoin holders. Earlier, the editors wrote that the BitGo crypto depository will not redeem Prime Trust. What exactly caused the failure of the deal is unknown. BitGo claims that they made the decision after unsuccessful attempts to save the company.