TrueCoin’s Third-Party Vendor Breach Leads to Potential Exposure of TUSD User Data

In a recent development, TrueCoin, the entity behind the stablecoin TrueUSD (TUSD), disclosed a potential security breach involving the compromise of certain Know Your Customer (KYC) and transaction history data. The breach was traced back to one of TrueCoin’s third-party vendors, who fell victim to a cyber attack.

TrueCoin, the operator of the TUSD stablecoin until July 13, 2023, received alarming news on October 16. The security team of a third-party vendor alerted TrueCoin about an unusual account modification within their organization, executed by a compromised support vendor. As a consequence, TrueCoin suspects that some of TUSD’s customer data might have been compromised.

Fortunately, TrueCoin’s internal systems remained untouched and were not accessed during the incident. The company confirmed that the breach was confined to the third-party vendor. TrueUSD promptly reassured users of its security, stating unequivocally, “TUSD system is SECURE and not attacked. Both TUSD system and TUSD’s reserves are UNAFFECTED,” via its official communication channels.

Typically, data obtained from such breaches, including names, email addresses, and phone numbers, are exploited in phishing attacks. Cybercriminals often impersonate various cryptocurrency services, luring unsuspecting investors with promises of quick and substantial profits.

As of now, the full extent of the attack and the subsequent data leak remains unclear. TrueCoin has not disclosed the exact number of users affected by this breach in their public announcement.

In a related move, TrueCoin recently severed ties with Prime Trust, a Nevada-based entity that abruptly suspended all fiat and cryptocurrency deposits and withdrawals. Despite this setback, TrueUSD made it clear that the situation at Prime Trust has no impact on their operations. They emphasized their diversified partnerships and the presence of “multiple USD rails” elsewhere, ensuring the safety of users’ funds.

“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 reiterated, underscoring their commitment to safeguarding user assets amidst the challenges posed by the evolving crypto landscape.

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