• TrueUSD (TUSD) has been linked with Tron’s Justin Sun, but the stablecoin issuer has denied these claims and threatened one detractor with a defamation lawsuit.
• On Wednesday, May 3, VC Partner Adam Cochran suggested that Justin Sun owned the stablecoin and controlled its private keys.
• TrueUSD responded by threatening legal action against Cochran but he pressed on with his claims.
TrueUSD Rises to Prominence
TrueUSD (TUSD) has quickly become the fifth-largest stablecoin by market cap thanks to growing support from Binance, the world’s largest crypto exchange by 24-hour trading volume. This newfound popularity has attracted scrutiny, as some have speculated that TUSD is owned by Tron founder Justin Sun.
Cochran Suggests Sun Owns TUSD
On Wednesday, May 3, Cinneamhain Ventures Partner Adam Cochran asserted that Justin Sun owned the stablecoin and now controlled its private keys in response to reports of TUSD’s acquisition by an Asia-based consortium called Techteryx. Cochran also questioned whether there was any dollar backing for the stablecoin.
TrueUSD Threatens Legal Action
TrueUSD did not take kindly to these claims and issued a statement threatening legal action against Cochran for defamation: “True USD was never owned by Justin Sun and it’s a despicable act to smear TUSD’s real-time Proof of Reserve in collaboration with our audit firm and Chainlink, as well as banking partners,“ they said. „We reserve our right to pursue legal remedies against your defamation.“
Cochran Refuses To Back Down
However, this threat failed to deter Cochran who continued pressing his claim that there was no evidence of dollar backing for True USD or any record of Techteryx on Singapore’s database. He also pointed out that all parties involved would be open to discovery in a potential lawsuit if brought forward.
Despite vigorous denials from True USD about being owned by Justin Sun and threats of legal action against detractors like Adam Cochran, speculation about links between the two continues to persist due to lack of transparency surrounding ownership and dollar backing for the stablecoin.