TrueUSD (TUSD), a stablecoin backed by Binance, has issued a statement assuring its users that their funds are safe and unaffected by PrimeTrust, a cryptocurrency custodian that has suspended all deposits and withdrawals of its fiat and digital assets:
“PrimeTrust has suspended all fiat and digital asset deposits. TrueUSD (TUSD) is unaffected. We have no exposure to Prime Trust and maintain multiple USD sources for issuance and redemption. Rest assured, all your funds are safe with TUSD.”
PrimeTrust has suspended all deposits of fiat and digital assets. #TrueUSD (#TUSD) is not affected by this situation. We have no exposure to Prime Trust and maintain multiple USD rails for minting and redemption. Rest assured, all your funds are safe with TUSD.
— TrueUSD (@tusdio) June 22, 2023
According to an email sent to customers by PrimeTrust today, the firm received a notice from the Nevada Financial Institution Division ordering it to cease all services until further notice. The email stated that PrimeTrust is working with regulators to resolve the issue and resume operations as soon as possible.
PrimeTrust, which provides custody and banking services to fintech and crypto companies, has faced financial and regulatory challenges in recent weeks. Earlier this month, another crypto custodian, BitGo, announced its intention to acquire PrimeTrust, but later terminated the deal today for reasons unspecified.
In response, TrueUSD said it has no exposure to PrimeTrust and maintains multiple USD channels for the issuance and redemption of its stablecoin. The firm also said that it is taking proactive measures to protect its users' funds and maintain its role as a trusted and trusted partner in the crypto space.
*Not investment advice.
