Finder’s product, Finder Earn, allows users to deposit a crypto stablecoin called TrueAUD (TAUD) and then earn a 4 per cent annual return on the amount deposited. TAUD is a stablecoin offered by US-based crypto firm TrustToken, which also operates an uncollateralised lending service called TrueFi.
TrueFi is currently owed $US12.8 million ($19.1 million) by Alameda, Bankman-Fried’s now-defunct $US15 billion trading firm. Alameda was also an investor in TrueFi, participating in a $US12.5 million funding round last year.
TrustToken’s lending platform and its stablecoin operations are separate, and the company says its stablecoin funds are fully collateralised and held in escrow at federally insured US-based depository institutions. The company does not appear to loan or otherwise invest stablecoin funds and publishes live verifications of the funds in escrow.
For this reason, a spokesperson for Finder said the company said it was confident there would be no potential flow-on effects for Finder Earn customers, noting that TAUD was not lent to Alameda and that TrustToken did not hold the stablecoin currencies itself.
“The [lending] pools on TrueFi themselves are separate to the issuance or redemption of the respective stablecoins they accept in lending, borrowing, collateral or payment of returns,” a spokesperson said. “There is no TAUD offering on TrueFi.”
Despite this, other Australian cryptocurrency exchanges have made moves to distance themselves from TAUD recently, with a spokesperson for Swyftx telling this masthead it had removed the stablecoin from one of its investment products last month in an effort to protect users from assets that derive yields from risky methods.
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