TUSD is undergoing a material change to its ownership structure. Is there a process for reducing exposure in the event of a material change?

Hey @rafael.cosman thanks for all of your work in the space!

Is it possible to provide more details about the consortium? Specifically, who are the entities involved?


Hi Rafael, I have two questions:

(1) Will the custody of the USD be changing, or will you continue to use your current Trustee and banking relationships?

(2) Will the Consortium be gaining control over the blacklisting function? If so, are they willing to make a public statement around their intentions?

Follow up: What is the exact date that you’ll be handing over control?


BlockTower Capital and Danhua Capital, And A16Z
— holdings/stake percentage remains the same? @TrueUSD_Official @rafael.cosman

Also, your statement on the Medium article “ TUSD has become the most transparent stablecoin on the market.” come on man keep it real— we all know it’s DAI. :smiley:


TUSD would be a great candidate vault for the DC IAM. 82MM seems a bit much DC headroom given the uncertainty atm.

If the same team is managing the banking and smart contracts, and there are still live third-party attestations, then the risk has not changed.

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Just want to let everyone aware that TUSD DC is going to zero if this poll passes as well as Friday’s executive including these changes.


Yes, I think what worries most the people is that Justin Sun will have a say in managing things, many don’t trust him due to his past actions.

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Hello Maker community,

We know there are some concerns about the new ownership of TUSD and we’re here to address your questions. We want you to feel confident that we as the new TUSD team is going to run TUSD with the same high level of trust and transparency Trust Token has always done.

  1. What is the process for freezing TUSD (a.k.a blacklisting a TUSD address)?
    The orperation process will remain excatly the same as before. we will keep everything unchanged.
    We will only freeze funds when directly ordered to do so by a law enforcement agency or court of competent jurisdiction, and this agency or court provides appropriate documentation proving their right to issue said order.
    We are 100% guarantee that funds will not be frozen under any other circumstances.

  2. How many signers are there in the multisig?
    This stays the same as before. An absolute minimum of 3, with 2/3 required to sign any owner action. More signers may be added over time for additional security (e.g. 3/5 or 5/7).

  3. What type of multisig will be used?
    A Gnosis SAFE (gnosis-safe.io). The Gnosis SAFE is extensively audited and is the most trusted multi-sig wallet on the market today. It was used by the TrustToken team to secure the TUSD smart contracts as well. We keep that the same as before.

  4. Who are the signers in the multisig?
    The signers for the multisig are senior members of our new TUSD team.

  5. What auditing will be in place for the funds backing TUSD?
    We will continue working with Armanino who provides real-time attestations and an on-chain oracle for the funds backing TUSD. This is part of what has made TUSD the most transparent stablecoin to date and we intend to build upon the strong foundation that has been laid.

We’re here to listen and to answer questions. Please feel free to message - your feedback is very valuable to us!

What else would help you feel comfortable continuing to fully support TUSD, we’re looking to build a great & trusted product and your feedback is valuable.

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I must add that TrueUSD collateral funds are segregated from TrustToken funds and mostly (I guess) stored in Hong Kong so somehow outside of the US regulation (which is something we might want looking at this thread).

Not sure it’s the best place, but looking at the Armanino report:

The Hong Kong depository institution also invests in other instruments
to generate yield to answer administrative and related costs, fees and charges. In all cases, cash
equivalents and other instruments are recorded at cost which approximates the fair value, or cash

We don’t know what, how much and it’s not mark-to-market. That has a strong 2008 smell. I think we should make proper due diligence before accepting $50M of liability from someone (this goes for other stablecoins as well).

Must add that the most transparent stablecoin is DAI. :slight_smile:


I feel like we’re getting mixed signals here. Who is managing TUSD? Is it a new team or the old team?

I think this sort of confusion is part of what is making everyone nervous. Personally I’d appreciate a clear understanding of who is in control of the TUSD contract.

Could you provide a list of these jurisdictions?


@TrueUSD_Official and @LongForWisdom, thank you both for your replies. I’d like to confirm everything that @TrueUSD_Official has stated above- we are working closely with them to make sure TUSD has the same high level of trust that it’s always had, but with increased resources behind it to hopefully become the largest and most trusted fiat-backed stablecoin in the world. The largest and most trusted crypto-backed stablecoin will remain DAI of course. :wink:

Ownership of TUSD will be moving over to an Asia-based consortium - they will be working with the TrustToken team who will continue to manage the operations, compliance, and banking relations of the TUSD product. As @TrueUSD_Official has described above, the signers for the multisig will be senior members of the new TUSD team from the consortium. They will be continuing to use the high security standards that we have had before.

This one is a little over my pay grade, I’ll pass this along to the legal team and see if there’s more clarity they can provide on exactly which jurisdictions would be considered competent.


Can you please provide information about this consortium and who its members are? There are rumors about who it may be, but I have not seen any official statement from you or the team. Alternatively, details about why information cannot be provided would be great!

I trust you and your team! However, you have dodged multiple questions in this thread about the consortium. If you are intentionally redacting this information, then I believe we should reduce exposure to this asset until these questions are answered and understood.

Appreciate the response. That does clear things up a bit. Thanks!


does anyone think it matters whether ‘the team’ will be ‘working with’ the new owners?

the project has been sold to a new entity and the private keys handed over

there is no reason to trust the old team given how this played out or the new team given that they hide their basic identity

just wind the legacy vaults down and let the new owners apply to be listed as new collateral, if they are so amazing and transparent they will understand, be prepared and agree it is necessary


Yeah, this sums it up.


Hello Maker community!

Popping in to say hello and to make a little introduction. I’m Annabel from the new TrueUSD team, and will be leading the marketing and business operations.

Following up on what @rafael.cosman and @TrueUSD_Official had already stated, the original TrueUSD team will continue to work on TUSD. I will be responsible as the main operations, marketing, and BD contact for the new TrueUSD team.

Please rest assured TrueUSD will continue to maintain its level of service and quality, and we will continue to develop TUSD to become the most trusted fiat-backed stablecoin in the world.

My team and I fully understand the concerns from the Maker community and we have stated the current situation with transparency and sincerity regarding your major concerns and questions. If anyone has any more inquiries that I could help with, feel free to reach out to me here, or via:

My Telegram: https://t.me/Annabel_TrueUSD
Email: [email protected]

Thank you for everyone’s understanding, and hope you can continue to support the awesome regulated, fiat-backed stablecoin that is TUSD!


Not appreciated. Transitioning a business line to new ownership is a normal thing that will happen over time. And the responsible way to do it is to make a public announcement in advance of any changes in control, which is exactly what we did. This gives MakerDAO and other users a chance to react to the change and decide if they want to continue using TUSD. If you don’t like it, you don’t have to.

As stated above, we certainly hope you will continue using TUSD and are working with the new ownership to provide whatever specific information they can to help your community feel comfortable with the product going forward.

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it is true that the blog post helps contextualise the situation, thanks for that :pray:

IIRC though you don’t currently hold the keys nor own the TUSD business

with all due respect, you have no physical or legal control over what happens next so IMO it no longer makes sense to assess the future of TUSD as an asset based on your historical stewardship

if the new owner is Justin Sun - a reasonable assumption given the mention of TRON and ‘asia-based consortium’ in the same sentence in the public announcement - https://unchainedpodcast.com/abuse-and-ethical-lapses-what-happened-when-justin-sun-acquired-bittorrent/ - https://cointelegraph.com/news/justin-sun-accused-of-bribing-his-way-to-the-top-of-the-steem-hierarchy - i’m not surprised this announcement coupled with ongoing avoidance of naming names is raising eyebrows here

as we don’t know who the new owners are we can’t decide whether or not to trust them :man_shrugging:

thanks to @AnnabelTUSD for introducing yourself, can you name the new owners of the business and custodians of the private keys?

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as a general policy it makes perfect sense that MKR would wind down vaults when an underlying collateral type is sold off, the new owners can always apply to open new vaults which should be trivial after a vote as all technical details will be the same

ideally the process would be as painless as possible for all involved, maybe even an automated migration path for vault holders

the same conversation should happen if there was a major change at USDC, or a RWA like a farm was sold to new owners

we should decide for ourselves who (public, named individuals) to trust, not simply delegate to a legal structure (‘a consortium’) that can be bought and sold on the market - it’s silly to make a fuss over flash loans forcing governance votes but then allow collateral types to be sold to new management without review

it’s worth watching the relevant discussion from the last risk governance meeting from about 50 mins - https://www.youtube.com/watch?v=1skpcjr182Y


There is a material change in risk associated and the underlying control. Until such time as another risk assessment can be produced, I would recommend lowering the debt ceiling to zero for this collateral.