Another Blow to Stablecoin TUSD Accused of Fraud by the SEC! Here are the Details

A leading decentralized exchange (DEX) for stablecoin trading. Curve Financeits native stablecoin Curve USD (crvUSD ) as collateral for TrueUSD (TUSD) He is considering removing it.

Curve Finance Proposes Removing TrueUSD as Collateral for crvUSD Amid Regulatory Concerns

This move comes in the wake of growing concerns about TUSD’s regulatory and transparency issues, including recent accusations from the U.S. Securities and Exchange Commission (SEC) accusing TrueUSD’s original issuer of defrauding investors.

WormholeOracle The proposal submitted by a user named suggests lowering the cap for TUSD supporting crvUSD to zero, meaning TUSD will no longer be allowed to support crvUSD issuance.

The proposal also includes crvUSD to better diversify collateral assets.PayPal’s stablecoin PYUSD’He proposes to reduce the money printing capacity from 15 million dollars to 5 million dollars.

WormholeOracle suggests, “crvUSD is overexposed to smaller stablecoins, especially TUSD, which has a questionable track record and was recently accused by the SEC of defrauding investors” he wrote.

TUSD is a liquidity pool used to maintain crvUSD’s $1 peg. PegKeepermechanism They added that it struggles with pegging stability and transparency issues compared to other stablecoins supported by .

Currently, $10 million worth of crvUSD can be minted using TUSD. Curve Finance CRV token holdersThe governance system led by will now review and vote on the proposal.

The discussion on removing TUSD is part of a larger strategy to reduce risk and ensure stability in crvUSD.

This is the original issuer of TUSD TrueCoinsIt comes after it faced legal action from the SEC for offering unregistered securities through its TrueFi platform.

The SEC had alleged that TUSD was not fully backed by the US dollar as claimed and that almost all reserves were deposited in a speculative offshore fund.

*This is not investment advice.