Reserves in Limbo: TUSD Bailout Unveils $456M Misappropriation, Justin Sun Steps In
In a dramatic twist for the stablecoin market, newly released Hong Kong court documents reveal that nearly $456 million of TrueUSD’s (TUSD) reserves were diverted into unauthorized, illiquid investments. This misappropriation has forced the stablecoin issuer, Techteryx, to seek emergency intervention from Justin Sun.
After acquiring TUSD from TrueCoin in December 2020, Techteryx entrusted reserve management to First Digital Trust (FDT) in Hong Kong. FDT was directed to invest these reserves through the Cayman Islands–based Aria Commodity Finance Fund (Aria CFF). However, filings allege that approximately $456 million was instead funneled into a separate entity, Aria Commodities DMCC, based in Dubai—a move Techteryx describes as “large-scale fraud.”
Court records identify Matthew Brittain, who controls Aria CFF via Aria Capital Management Ltd, and his wife Cecilia as central figures in this alleged misdirection. Despite contractual commitments, funds were reportedly channeled into Aria DMCC, a firm involved in trade finance and asset development across sectors like mining, maritime, and renewable energy. This redirection left TUSD’s reserves effectively locked in long-term, illiquid projects, with attempts to redeem funds between mid-2022 and early 2023 yielding little to no return.
Amid mounting liquidity pressures, Techteryx assumed full operational control of TUSD in July 2023 after TrueCoin exited the day-to-day management role. With user redemptions at risk, Justin Sun stepped in around that time, structuring an emergency liquidity loan to help sustain operations. To shield retail investors from further disruption, Techteryx quarantined 400 million TUSD tokens.
First Digital Trust’s CEO, Vincent Chok, denies any fraudulent conduct, claiming that all actions were executed strictly per Techteryx’s instructions. Meanwhile, Matthew Brittain dismisses the allegations as “false” and maintains that all investment terms were clearly outlined in the offering documents.
The turmoil surrounding TUSD is compounded by broader challenges, including the collapse of Prime Trust—its primary fiat custodian—and a previous SEC settlement with former TUSD owners TrueCoin and TrustToken over misrepresentations about reserve backing.
As the legal battle unfolds, these revelations cast a long shadow over TUSD’s credibility and raise critical questions about oversight and transparency within the stablecoin ecosystem.
