TUSD Red Flag: Justin Sun minted 750m TUSD over the weekend by supposedly wiring funds to Signature Bank. At the same time, SBNY was being seized by regulators. So they minted 750m TUSD when Feds were seizing the bank? Either $750m USD is with regulators

Justin Sun's stablecoin TUSD seems to be the latest shady stablecoin in town.

Over the weekend as USDC had de-pegged due to the SVB banking crisis, TUSD took centre stage and minted $750m worth TUSD.

You can see this minting activity directly in the increase in TUSD market cap charts

It went from from around 1.3 Bn to 2.08 Bn between 12th to 13th March. When a stablecoin marketcap rises by such huge numbers, it ususally means that there is a change in supply i.e in this case, new TUSD has been minted. From the chart above, you can see that most of the mint occurred on 12th.

At the time of mint, TUSD published a corresponding increase in their Signature Bank account balance on their own "real time assurance" page.

As per their \"trust explorer\" page, their Signature Bank balance had been bumped up to $850m on 13th March 2023

At this point, it seems its regular stablecoin minting activity, as they wired funds to Signature SBNY and then minted corresponding TUSD on their chain. From the market cap increase in the chart above, we can see that most of the minting was done on 12th March 2023.

What else happened on 12th March 2023?

Well the bank which they seemed to have wired funds to, Signature Bank SBNY was seized by regulators NYDFS and feds FDIC.

https://www.dfs.ny.gov/consumers/alerts/SignatureBank

On Sunday, March 12, 2023, the New York State Department of Financial Services (DFS) took possession of Signature Bank in order to protect depositors. All depositors will be made whole.

According to these mints, it seems TUSD minted 750m TUSD tokens wiring funds to Signature Bank, at the same time Signature bank was being seized by regulators.

As ridiculous as that sounds....

Signature Bank offers (offered? ) a service Signet that processes crypto exchanges and stablecoins transactions through weekends, when other bank wires are down.

There were rumors even before the weekend that Signet was down. Even Coinbase had halted redeeming USD to USDC and vice-versa over the weekend, leading to USDC's depeg. But somehow, TUSD wired $750m to Signet (which was likely down) over the weekend, and minted TUSD?

Whats even more shady is that if you go into their own "Trust explorer" webpage, all traces of having $850m with SIgnature Bank have been wiped clean, and the page now says they have $1.4 Bn with Capital Union Bank

This is the same page, which earlier said they had $850m with SBNY but now claims they have $1.4 bn with Capital Union

This is TUSD's "Trust explorer" web page: https://real-time-reserves.trustexplorer.io/truecurrencies

How can anyone believe these guys?

If they indeed wired $750m to SBNY, that amount is possibly with regulators now. Did they manage to get it out of Signature Bank and move the funds to Capital Union bank as their website now claims?

So many contradicting information.

It seems the most plausible explanation is that Justin Sun saw the option to buy USDC at a huge discount over the weekend, so minted 750m worth TUSD out of thin air to buy the USDC while not actually wiring any funds, which he can later show as a burn of TUSD to adjust the books if he so wanted.

Too bad, his fraudulent scam seems to have been exposed by regulators seizing Signature Bank, the bank where he allegedly send funds to....thus exposing naked this entire scam operation