TrueCoin third-party vendor breaches or breaches of TUSD user data

Written by Arijit Sarkar, Cointelegraph; Compiled: Pine Snow, Golden Finance

Stablecoin TrueUSD (TUSD) has announced that certain Know Your Customer (KYC) and transaction history data could be compromised due to a breach of one of TrueCoin’s third-party vendors.

TrueCoin is the operator of the TUSD stablecoin until July 13, 2023. On October 16, the third-party vendor’s security team informed TrueCoin,“[TrueCoin] An unusual account change by an infected support vendor occurred within the organization”. As a result, TrueCoin suspects that some of TUSD’s existing customer data has been compromised.

TrueCoin’s internal systems were not compromised or accessed because the company confirmed that the attack was an isolated incident against a third-party vendor. "The TUSD system is secure and cannot be attacked. Neither the TUSD system nor the TUSD reserve is affected. TrueUSD confirmed through its official X (former Twitter) account.

The data collected from such breaches (names, email addresses, and phone numbers, etc.) is often used in phishing attacks. Attackers reach unwary investors by mimicking various crypto services, often promising to guarantee high profits for investors for a short period of time.

The impact of this attack and the resulting data breach has not yet been determined, as the total number of user data was not disclosed during the announcement.

TrueCoin recently distanced itself from Nevada-based Prime Trust, which abruptly halted all fiat and cryptocurrency deposits and withdrawals.

TrueUSD declared Prime Trust “unaffected by circumstances” while highlighting its diversified partnerships and maintaining a “multi-dollar track” elsewhere.

"PrimeTrust has suspended all fiat asset and digital asset deposits. #TrueUSD (#TUSD) are not affected by this condition. We have no exposure to Prime Trust and maintain multiple U.S. dollar minting and redemption criteria. Rest assured that all your funds are safe in TUSD. TrueUSD said.