A trader has seized the opportunity to open an #on-chain short position after #TrustToken decided to temporarily cease minting and redemptions of its TrueUSD stablecoin through its banking partner, Prime Trust.

On-chain data shows that a user of Ethereum used #Aave's v2 lending facility to deposit 7.5 million USD Coin as security.After borrowing 4 million #TUSD, they immediately sold it for #USDC. This borrowing and selling right away tactic is widely used to create a short position on a certain asset.

The TrueUSD team stated earlier this month that their custodial partner, a business based in Las Vegas, Nevada, had stopped minting new TUSD. The Nevada Department of Business and Industry's Financial Institutions Division subsequently issued a cease-and-desist order against Prime Trust.