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TrueCoin’s third-party vendor breach potentially leaks TUSD user data

17.10.2023
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The team behind stablecoin TrueUSD (TUSD) announced a potential leak of certain Know Your Customer (KYC) and transaction history data after one of TrueCoin’s third-party vendors was compromised.

TrueCoin was the operator of the TUSD stablecoin until July 13, 2023. On Oct. 16, a third-party vendor’s security team informed TrueCoin of “an anomalous account change within [TrueCoin’s] organization made by a compromised support vendor.” As a result, TrueCoin suspects the compromise of some of TUSD’s existing customer data.

TUSD team was informed by TrueCoin that they received a third-party vendor's notification that the vendor’s Security Team detected “an anomalous account change within [TrueCoin’s] organization made by a compromised support vendor.”

— TrueUSD (@tusdio) October 16, 2023

TrueCoin’s internal systems were not impacted or accessed, as the company confirmed the attack was an isolated incident on a third-party vendor. “TUSD system is SECURE and not attacked. Both TUSD system and TUSD’s reserves are UNAFFECTED,” affirmed TrueUSD through its official X (formerly Twitter) account.

Data collected from such breaches — names, email addresses and phone numbers, among others — are typically used for phishing attacks. Attackers reach out to unwary investors by mimicking various crypto services, often promising high profits in short amounts of time.

The impact of the attack and the resultant data leak is yet to be identified, as the total number of users’ data was not revealed during the announcement.

TrueUSD has not yet responded to Cointelegraph’s request for comment.

Related: TrueUSD stops minting via Prime Trust, loses dollar peg

TrueCoin recently distanced itself from Nevada-based Prime Trust right after the latter abruptly halted all fiat and cryptocurrency deposits and withdrawals.

TrueUSD announced that “it is not affected by the situation” at Prime Trust while emphasizing its diversified partnerships and maintaining “multiple USD rails” elsewhere.

“PrimeTrust has suspended all deposits of fiat and digital assets. #TrueUSD (#TUSD) is not affected by this situation. We have no exposure to Prime Trust and maintain multiple USD rails for minting and redemption. Rest assured, all your funds are safe with TUSD,” TrueUSD stated.

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Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

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