Summary
- TrueUSD (TUSD) has announced a pause in its minting process through crypto custodian Prime Trust.
- This development adds to the existing woes faced by Binance, following the recent charges brought against the exchange and CEO Changpeng “CZ” Zhao by the US Securities and Exchange Commission (SEC).
- TUSD assured users that services for TUSD redemption and transactions will continue to operate without any disruptions.
Binance Faces New Crisis with TrueUSD Minting Pause
In a fresh blow to Binance, the world’s largest cryptocurrency exchange, TrueUSD (TUSD) has announced a pause in its minting process. This development adds to existing issues faced by Binance due to charges brought against it and CEO Changpeng “CZ” Zhao by the US Securities and Exchange Commission (SEC). Despite this pause in minting, TrueUSD has assured users that services for TUSD redemption and transactions will remain unaffected.
Impact on Crypto Market
The current supply of TUSD stands at 2.50 billion tokens, with USD-denominated collateral held in accounts totaling $2.08 billion. Rumors of insolvency surrounding Prime Trust have caused some worries within the crypto community but crypto custodian BitGo has stepped up with assurances of custodial support for TUSD holders. The news of this pause in minting has already sent shockwaves throughout the crypto market as prices dropped significantly across major cryptocurrencies including Bitcoin, Ethereum, Ripple etc.