June 24 (Cointime) - A trader has taken advantage of TrueUSD's temporary halt on mints and redemptions through Prime Trust by initiating an on-chain short position.

The trader utilized Aave's V2 lending platform to borrow 4 million TUSD and promptly sold it for USDC. TrueUSD issuer clarified that the Prime Trust situation does not affect its operations concerning the conversion of fiat to stablecoin and vice versa. BitGo previously signed a non-binding letter of intent to acquire Prime Trust, but cancelled the acquisition on June 22. TUSD's adoption by Binance led to a surge in popularity, making it the fifth largest stablecoin with a market capitalization of just over $3.1 billion.