Golden Finance reported that Curve Finance is considering removing TrueUSD (TUSD) as the Collateral for its stablecoin crvUSD, due to the U.S. Securities and Exchange Commission (SEC) filing securities law violations against TrueCoin and TrustToken. The allegations claim that 99% of TUSD's reserve funds are invested in high-risk offshore funds, raising concerns about its safety and solvency.
A proposal was put forward in the Curve governance forum to reduce the collateral limit of crvUSD on TUSD to zero and to decrease its association with PayPal Stable Coin PYUSD in order to mitigate related risks. Currently, the main Collateral for crvUSD includes Ethereum (ETH) and Wrapped Bitcoin (WBTC).
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Curve is considering removing TUSD as crvUSDCollateral due to concerns over SEC allegations
Golden Finance reported that Curve Finance is considering removing TrueUSD (TUSD) as the Collateral for its stablecoin crvUSD, due to the U.S. Securities and Exchange Commission (SEC) filing securities law violations against TrueCoin and TrustToken. The allegations claim that 99% of TUSD's reserve funds are invested in high-risk offshore funds, raising concerns about its safety and solvency. A proposal was put forward in the Curve governance forum to reduce the collateral limit of crvUSD on TUSD to zero and to decrease its association with PayPal Stable Coin PYUSD in order to mitigate related risks. Currently, the main Collateral for crvUSD includes Ethereum (ETH) and Wrapped Bitcoin (WBTC).