Stablecoin TrueUSD (TUSD), associated with Justin Sun, has experienced a fall below its $1 peg.

Reports indicate a considerable number of holders cashing out hundreds of millions in TUSD, opting to hold them in its competitor stablecoin Tether.

TUSD dipped below its peg around Jan. 15, at 11:00 am UTC, reaching as low as $0.984 by 11:15 pm.

At the time of publication, TUSD is trading at $0.987 on Kraken.

Justin Sun has yet to comment on the matter.

His X profile is eeriely silent, save for a retweet earlier that day.

Justin Sun's Regulatory Woes

This incident adds to previous regulatory scrutiny on projects associated with Justin Sun.

On November 9th, the Campaign for Accountability (CfA) presented information to U.S. Senators about alleged cryptocurrency use in money laundering, specifically mentioning the Tron blockchain and stablecoin issuer Circle.

The CfA's letter, signed by executive director Michelle Kuppersmith, alleged extensive ties between Circle, Justin Sun's Tron Foundation, and major Wall Street investors.

The letter expressed concerns about Circle's Cross-Chain Transfer Protocol potentially facilitating illicit finance, especially when involving transfers to Tron, a network linked to law enforcement actions.

Justin Sun had previously denied money laundering accusations in 2019.

Last December, the CfA reiterated its claims against Circle, stating that it had admitted to "banking" Justin Sun, a point disputed by Circle's head of public policy.

Dante Disparte, Chief Strategy Officer of Circle Financial, clarified that Circle no longer "banks" Justin Sun without addressing specific details of their relationship.

More Questions Than Answers

These questions keep popping up with Justin Sun.

Us at Coinlive finds these things too much of a coincidence.

We will keep you updated should there be any latest updates on the matter.