1. Overview

• Stablecoin: TUSD

• Issuer: TrustToken / TrueCoin LLC (now owned by Techteryx)

• Blockchain: Ethereum, Tron, BNB Chain

• Launch: March 2018

• Type: Fiat-backed (claimed), centralized

2. Use Case

TUSD positioned itself as a trusted dollar-pegged asset for:

• 💳 On/off-ramp access to major exchanges and DEXs

• 💡 DeFi integrations (e.g., lending protocols, liquidity pools)

• 🔀 Cross-chain swaps on Ethereum, Tron, and BNB

However, frequent peg drops, custodian issues, and transparency problems have damaged its reputation among traders and institutions.

3. Compliance Team & Governance

• Issued by TrustToken; currently operated by Techteryx, a relatively opaque entity

• Lacks a publicly disclosed compliance or risk team

• No regular, independent audit reports published in recent years

• Governance structure remains unclear to this day

4. Customer Feedback & Reputation

• No official Trustpilot page for TUSD; public perception gathered mostly via crypto forums and Twitter/X

• Recurring accusations of shadowy operations, lack of transparency, and poor user support

• Public peg drops have resulted in widespread user frustration and mistrust

5. CU Check / Background

• TUSD formerly used Prime Trust as custodian — which collapsed in 2023

• The SEC filed charges in 2024 for fraudulent, unregistered investment offerings involving TUSD reserves (source)

• Justin Sun allegedly stepped in to maintain solvency during post-Prime Trust liquidity panic

• Company has changed legal ownership multiple times without clear investor communications

6. Crypto-Economics

• Minting / Redemption: via centralized custodians (e.g., Prime Trust, First Digital)

• Claimed 1:1 backing: later shown to be misleading; some reserves were held in a “risky commodity fund“

• Stablecoin performance: depegged several times (notably -5% to -10% during 2023 liquidity crises)

• No yield, no governance utility

7. Backing & Value Stability

• No consistent fiat backing: SEC filings showed only partial cash reserves

• Reserve custodianship failure: Prime Trust insolvency caused temporary freeze of redemptions

• TUSD redemptions were suspended or delayed during crises

• Price stability only returned after alleged bailouts—not through a robust reserve model

8. Final CyberFinance Compliance Rating

⚫ FINAL RATING: BLACK SIGNAL

TUSD’s case illustrates why stablecoin compliance and transparency matter. It has lost the trust of institutional players and failed to demonstrate credible reserve management. The presence of shadow partnerships and legal issues places it in the highest risk category.

⚠️ Ratex42 Summary: High-Risk Asset

• Avoid TUSD unless fully restructured under verified, licensed custodians

• Stablecoins must offer clear collateral structures and auditable trust

• This coin should remain on watchlists and exclusion lists for institutions