HTX Closes Reserve Proof due to TUSD’s Difficulty in Maintaining Anchor Status

TUSD has been trading below $1 for two weeks in a row.

The worrying development comes as cryptocurrency exchange HTX, previously known as Huobi, abruptly shut down its proof-of-reserve system today, according to Adam Cochran, managing partner at Cinneamhain Ventures. TrueUSD (TUSD), which is owned by HTX shareholder Sun Yuchen, reportedly failed to maintain its peg to $1 for more than two weeks.Bitcoin Miner

Earlier today, a visit to HTX’s Proof of Reserves page showed no data on the exchange’s cryptocurrency reserves. Reserve rates, wallet balances, and user asset data were all temporarily missing. The page is now back online, but the timing of this temporary outage still raises questions given the ongoing issues with the stablecoin TUSD.

The change comes after a recent review of TUSD and its apparent lack of sufficient collateral. According to CoinGecko, TUSD has been trading below $1 since January 7th.

Earlier this month, TrueUSD failed to provide real-time proof that it had sufficient dollar reserves to back the stablecoin. This failure of transparency has led to speculation that TrueUSD may be undercollateralized.ETC mining

There have been multiple reports of users being unable to redeem TUSD. Meanwhile, a Tron address associated with Sun appears to be the only one minting and destroying more than $3 billion worth of TUSD tokens.

Last July, Archblock co-founder Daniel Jaiyong filed a lawsuit accusing Sun of secretly acquiring TrueUSD. Court documents state that Sun acquired the troubled stablecoin issuer during negotiations with Archblock.

An HTX spokesperson confirmed to the press:

“User assets are 100% retained and user assets are secure. There is a specific issue with the POR interface which is expected to be fixed within a few hours.”