Justin Sun quietly rescues TUSD after $456 million reserves become illiquid

0 1,978 1 minute read

Key Takeaways

Justin Sun provided emergency funding to stabilize TrueUSD amid a $456 million liquidity crisis.
TUSD issuer Techteryx claims large-scale fraud led to unauthorized investments by its fiduciary.

Justin Sun, the founder of TRON, quietly provided emergency funding to stabilize TrueUSD (TUSD) after $456 million of the stablecoin’s reserves became illiquid, Hong Kong court documents have revealed. The details were first reported by CoinDesk.

Techteryx, TUSD’s issuer, claims it fell victim to what it describes as “large-scale fraud” after First Digital Trust (FDT), its Hong Kong-based fiduciary, invested reserves in unauthorized ventures through Dubai-based Aria Commodities DMCC instead of the intended Cayman Islands-registered Aria Commodity Finance Fund.

Court filings show the investments were largely directed toward illiquid assets, including manufacturing plants, mining operations, maritime vessels, port infrastructure, and renewable energy projects in emerging markets. When Techteryx attempted to redeem its investments between mid-2022 and early 2023, it received minimal returns.

“The remittances to Aria DMCC were blatant misappropriation and money-laundering,” according to the statement of claim. These allegations have not been tried in court.

Vincent Chok, First Digital’s CEO, denied any wrongdoing, stating the firm “acted strictly as a fiduciary intermediary, executing transactions precisely according to instructions provided by Techteryx and its representatives.”

Matthew Brittain, who controls Aria Commodity Finance Fund, told CoinDesk he “completely rejects Techteryx’s claims against ARIA DMCC and any related entities,” adding that “a number of false allegations were made in the court proceedings.”

To maintain operations, Techteryx quarantined 400 million TUSD to ensure retail redemptions could continue despite the liquidity crisis. Sun’s emergency funding was structured as a loan, according to court documents.

The stablecoin issuer faced additional challenges when Prime Trust, its fiat banking partner, entered receivership in mid-2023. Further complications arose when TrueCoin and TrustToken, TUSD’s previous owners, settled with the SEC for $500,000 in September 2024 over allegations of false marketing practices.

This is a developing story.