Binance Woes Rise As TUSD Minting Paused, But There’s A Catch

The world’s largest crypto exchange Binance witnessed massive liquidation on Saturday after the US Securities and Exchange Commission (SEC) brought 13 charges against the exchange and CEO Changpeng “CZ” Zhao earlier this week. However, troubles for Binance continue to rise as TrueUSD (TUSD) minting via crypto custodian Prime Trust is paused.

TUSD Minting Through Prime Trust Paused

TrueUSD on June 10 announced that TUSD mints via Prime Trust are paused. The move will bring more troubles for Binance as the exchange started supporting TUSD stablecoin after the US regulator ordered Paxos to stop minting Binance USD (BUSD) stablecoin.

The firm assured users that TUSD minting and redemption services remain unaffected and will continue to operate normally. In addition, the firm said its partnerships with other banking institutions remain intact, ensuring seamless TUSD transactions.

TUSD minting and redemption services remain unaffected and will continue to operate as usual. We want to assure you that our partnerships with other banking institutions remain intact, allowing for seamless transactions. https://t.co/N3RwvLGPon

— TrueUSD (@tusdio) June 10, 2023

TUSD reserves are majority held in Prime Trust, First Digital, Capital Union, Manual, and BitGo. According to TUSD real-time reserve balance, the token supply stands at 2.50 billion TUSD and USD-denominated collateral held in accounts is $2.08 billion.

Prime Trust started facing several issues after the bear market and the US crypto regulatory crackdown. The custodian was linked to FTX and its executives, let go one-third of workforce in January, and started holding Binance customers’ cash via partner banks in March.

Meanwhile, crypto custodian BitGo has reached a preliminary agreement to acquire rival Prime Trust amid rumors of its insolvency.

Also Read: Top AI Tokens Plunge Over 15% Amid Regulatory Turmoil

Crypto Market Crashed

The crypto market crashed due to tight market conditions after the US SEC filed lawsuits against Binance and Coinbase. Market makers such as Jump Crypto and Cumberland have pulled all the liquidity from altcoins. Hedge fund Scimitar Capital is likely behind the massive $2 billion altcoin liquidation.

Over $350 million in crypto liquidation is recorded in the last 24 hours. It is one of the largest liquidations in the history of the crypto market.

Bitcoin and Ethereum prices fell more than 4% and 5% in the last 24 hours. The market is expected to continue falling in the US market hours.

Also Read: Crypto Market Crash: Here’s Why Bitcoin, Ethereum, Altcoins Are Falling Sharply

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.