TrueUSD Maintains Near Dollar Peg Amid Deployer Private Key Drama

The team behind TrueUSD (TUSD), one of the largest stablecoins by market capitalization of $3 billion, has refuted any affiliation with the controversial TEURO stablecoin. The declaration comes after claims that the euro-backed stablecoin is using the TUSD deployer’s private key.

Built on the Ethereum network with transparent proof-of-reserve attestation, TrueUSD is a fiat-collateralized stablecoin issued by the TrustToken platform that keeps USD funds in third-party escrow accounts without direct access by TrustToken. Introduced in mid 2018, it is the only stablecoin offering real-time audits.

What Happened?

Recently, a stablecoin thought to be issued by the TrueUSD team called TEURO was released. It was later discovered that someone used the TUSD deployer private key to create the fake stablecoin.

On the social media platform X (formerly Twitter), the TrueUSD team clearly stated that it had no affiliation with stablecoin. The team also revealed that the address used by the scammer was exclusively designated for token deployment; therefore, it does not have permission over TUSD smart contracts.

“When evaluating newly deployed contracts, it’s essential to be cautious and understand the potential risks. We strongly advise you to step back and refrain from risky investments,” the team added.

Linked to Security Breach?

The incident has given rise to a speculation that the stablecoin issuer may have withheld some details regarding the extent of a hack it suffered recently.

Earlier this month, TrueUSD was hit by a third party security breach which led to the unintended disclosure of personal information of some of its clients.

The security breach, which was initiated through TrueUSD’s former service provider, TrueCoin, on September 20, sparked an immediate response from the cybersecurity and engineering teams.

The team reassured its users that there were no unauthorized downloads, alterations, or removals of personal data. Additionally, TrueUSD advised affected users to maintain a watchful eye on their accounts for unusual activities to avoid becoming a victim of potential phishing scams.

Despite the controversies surrounding the stablecoin, it continues to maintain a 1:1 peg to the US dollar. As of press time, TrueUSD is up 0.02% in the past 24 hours, according to data from Coinstats.