CandleFocus

Is HTX redeeming 80% of TrueUSD?

Author: Content Editor
The market capitalization of TrueUSD (TUSD) is reported differently on different platforms, with variations ranging from $495 million to $502 million. However, these numbers include TUSD tokens transferred by HTX, which may be redemption addresses. TrueUSD explained that redemptions involve sending funds back to specific addresses that appear unconventional but are intentional. There are several transactions by HTX that may be redemptions, but there are also addresses that don't fit TUSD's definition of burn addresses. These addresses have not sent the received funds anywhere else and are not included in HTX's proof of reserves. The pattern of self-transfers can be seen in several addresses, indicating potential redemptions. However, these redemptions have not been fully processed as the funds are still held in the addresses. The reason for this is unclear. It is noted that there is litigation between TrueUSD and the Hong Kong Depository Institution, suggesting potential liquidity and credit risks. The recent SEC settlement with TrueUSD revealed issues with the assets and their investment in a risky fund. Ongoing legal proceedings in Singapore and Hong Kong further indicate that TrueUSD may not be able to redeem all outstanding tokens. Despite these issues, TrueUSD is still included in various protocols and traded on multiple exchanges. HTX has also redeemed WBTC tokens not disclosed in the proof of reserves reports. There are connections between HTX and TrueUSD, although HTX's Justin Sun denies owning the project. Further clarification is being sought from HTX and TrueUSD regarding the transactions and the current state of reserves.

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