Rapid Insights: TUSD Redemptions after Prime Trust Suspension

There have been concerning remarks on Archblock’s ability to honor TUSD redemptions following a recent cease-and-desist notice issued to Prime Trust, one of Archblock’s larger partners in the minting and redeeming of TUSD tokens for the US dollar. Nevada regulators issued said notice to Prime Trust, claiming that there is a shortfall in customers’ funds and, thus, the firm is unable to honor customers' withdrawals. The notice comes right after a failed acquisition by BitGo, which might suggest that Prime Trust’s financial outlook is more pessimistic than they let on, especially since Prime Trust has halted all deposits and withdrawals.

As of this writing, there have been multiple allegations on Twitter that TUSD redemptions are not being processed. Accusations range from redemptions being refunded (tweet 1 and tweet 2) to having no counterparty attestation for TUSD redemptions. From the Ethereum blockchain data, while there are a handful of accounts that experienced said “refund,” there are also a handful of addresses that appear to have had their redemptions processed in the same time period. (wallet 1 and wallet 2)