TrueCoin’s third-party vendor breach may expose TUSD user data.

The team behind stablecoin TrueUSD (TUSD) has announced that Know Your Customer (KYC) and transaction history information may be leaked after one of TrueCoin's third-party providers was compromised.

TrueCoin will be the TUSD stablecoin operator until July 13, 2023. On October 16, a third-party vendor's security team notified TrueCoin of an “unusual account change.” [TrueCoin’s] A company made by a corrupt support provider. As a result, TrueCoin questions some of TUSD's existing customer data agreements.

The TUSD team was informed by TrueCoin that they had received a notification from a third-party vendor that the vendor's security team had “found an unusual account change in [TrueCoin’s] A company made by a corrupt support provider.

— TrueUSD (@tusdio) October 16,

TrueCoin's internal systems were not affected or accessed as the company confirmed that the attack was an isolated incident against a third-party provider. “The TUSD system is secure and not compromised. TrueUSD confirmed via its official X (formerly Twitter) account that both the TUSD system and TUSD reserves are intact.”

Data collected from such breaches — names, email addresses and phone numbers, among others — is commonly used for phishing attacks. Attackers often find unsuspecting investors by impersonating various crypto services that claim to make huge profits in a short period of time.

The impact of the attack and the resulting data leakage are not yet known, as comprehensive user data was not disclosed at the time of the announcement.

TrueUSD has not yet responded to Cointelegraph's request for comment.

Related: TrueUSD Stops Working Through Prime Trust, Loses Dollar Peg

TrueCoin recently divested itself from Nevada-based Prime Trust after ceasing all fiat and cryptocurrency deposits and withdrawals.

TrueUSD said it was “not affected by the situation” at General Trust, highlighting various partnerships and maintaining “several USD railroads” elsewhere.

“PrimeTrust has suspended all deposits of fiat and digital assets. #TrueUSD (#TUSD) is not affected by this situation. We have no exposure to PrimeTrust and hold multiple US dollar rails for processing and redemption. Rest assured, all your funds are safe with TUSD,” he said. TrueUSD said.

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