Violations by TrueCoin’s third-party supplier may lead to TUSD user data leakage

TUSD User Data Leakage Possible Due to Violations by TrueCoin's Third-Party Supplier

Author: Arijit Sarkar, Cointelegraph; Translation: Song Xue, LianGuai

Stablecoin TrueUSD (TUSD) has announced that due to a threat to one of TrueCoin’s third-party suppliers, certain “know your customer” (KYC) and transaction history data may have been leaked.

TrueCoin is the operator of TUSD stablecoin, until July 13, 2023. On October 16, the security team of the third-party supplier notified TrueCoin, “[TrueCoin] saw anomalous account changes made within the organization by the compromised support supplier.” As a result, TrueCoin suspects that some of the existing customer data of TUSD may have been compromised.

TrueCoin’s internal systems were not affected or accessed, as the company confirms that this attack was an isolated incident targeting the third-party supplier. “The TUSD system is secure and not under attack. The TUSD system and TUSD reserves are both unaffected.” TrueUSD confirmed via their official X (formerly Twitter) account.

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Data collected from such breaches (such as names, email addresses, and phone numbers) are typically used for phishing attacks. Attackers contact unsuspecting investors by impersonating various crypto services, often promising high profits in a short period of time.

The impact of this attack and the extent of the data leakage is yet to be determined, as the announcement did not disclose the total number of affected user data.

TrueCoin recently disassociated itself from Prime Trust, based in Nevada, which suddenly halted all fiat and cryptocurrency deposits and withdrawals.

TrueUSD announced that Prime Trust is “unaffected by the situation,” emphasizing its diversified partnerships and maintaining “multiple dollar rails” elsewhere.

“PrimeTrust has temporarily suspended all fiat and digital asset deposits. #TrueUSD (#TUSD) is not affected by this. We have no risk exposure to Prime Trust and maintain multiple dollar minting and redemption standards. Rest assured, all your funds in TUSD are safe.” TrueUSD stated.

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