The Worldwide Freezing Order on Misappropriated TUSD Reserve Assets in Place; Justin Sun Advances Cross-Border Legal Cooperation to Critical New Phase
In April, the systemic misappropriation of TrueUSD (TUSD) reserves sent shockwaves through the industry. Following regulatory intervention across multiple jurisdictions and ongoing cross-border investigations, there has been a recent judicial breakthrough in this major embezzlement case spanning Hong Kong, Dubai, the Cayman Islands and other jurisdictions.
On October 17, the Dubai International Financial Center Courts ("DIFC Courts") issued an indefinite worldwide freezing injunction against Aria Commodities DMCC, covering $456 million TUSD reserve assets.
To address public concerns and enhance transparency, a media briefing titled "Truth Revealed, Justice Prevails: Media Update TUSD Reserve Reconstitution and International Litigations Against ARIA and FDT" was held in Hong Kong on November 27. TRON founder Justin Sun attended the event and shared the following updates:
「I want to extend my sincere thanks to the DIFC Courts and its Digital Economy Court for this fair and resolute ruling. We're actively tracing the missing funds around the globe, with the goal of full recovery and restitution of all reserve assets.」
He further emphasized, 「The crypto space is evolving, and incidents like this highlight the need for better regulatory oversight on traditional financial intermediaries and transparency where trust is paramount. The TUSD bailout wasn't just about saving a stablecoin; it was about protecting the public and upholding confidence and integrity in blockchain.」
On April 3, Justin Sun reported a $456 million misappropriation in TUSD reserve funds by Hong Kong trust company First Digital Trust (FDT) and its affiliate Legacy Trust, as well as Aria group. Upon discovery, Justin Sun offered Techteryx a bailout of nearly $500 million from his personal financial resources to safeguard the interests of TUSD holders.
On November 13, Sun shared the DIFC Courts' ruling on social media, expressing gratitude to the court for issuing its first worldwide asset freeze to protect the rights of TUSD holders. In his post, he stated, "Justice may be delayed, but it will never be denied."
In the October 17 ruling, the DIFC Courts affirmed a proprietary injunction and issued a worldwide freezing order against Aria Commodities DMCC and all laundered proceeds from the $456 million TUSD reserve assets. Aria Commodities DMCC (Aria DMCC) is a Dubai private company wholly owned by the spouse of UK citizen Matthew Brittain, the de facto controller of ACFF.
An Embezzlement Scheme: Exploiting Custody Gaps to Build a Cross-Border Fraud Network
After Techteryx acquired TUSD business in late 2020, to ensure operational continuity during the transition, the original California-based operator, TrueCoin, was retained to manage reserves and coordinate banking operations.
Between 2021 and 2022, TrueCoin colluded with select management personnel at Hong Kong trust companies FDT and Legacy Trust, establishing an illicit network with Matthew Brittain, the controller of the offshore fund ACFF.
The parties involved forged documents and made unauthorized fund transfers, repeatedly submitting misleading materials to banks. This allowed them to systematically siphon a total of $456 million TUSD fiat reserves out of the regulated custodial network. Those funds were transferred to the bank accounts of Aria DMCC, a Dubai private company wholly owned by Matthew Brittain's wife. Aria DMCC is not an investment target authorized by Techteryx.
According to the released information, Vincent Chok, CEO and Director of FDT, not only approved these transfers but also actively directed the funds to private accounts to receive substantial undisclosed illicit kickbacks. FDT, Aria group and their co-conspirators created fake subscription documents to create the illusion of proper investments, and to hide the facts of fund misappropriation.
In 2024, the U.S. Securities and Exchange Commission (SEC) publicly accused TrueCoin of misleading investors about the safety of its reserve funds over an extended period. The complaint highlighted the company's failure to disclose material risks and exposed systemic fraudulent practices within its management structure.
Legal Milestone: DIFC Court Ruling Advances Asset Freezing and Recovery
As the investigation progressed, Techteryx started legal actions across multiple regions in 2023. After months of cross-border evidence gathering and several hearings, a significant legal milestone was reached on October 17. The DIFC Court ruled that the case presents serious triable issues, including whether the funds were illicitly used to support a private company's liquidity, whether authorizations were forged, whether custodians mismanaged the reserves, and whether related institutions were complicit.
Based on the strength of the evidence and the severity of the alleged misconduct, the court issued an indefinite global asset freeze order against Aria DMCC, prohibiting any attempts to transfer, dispose of, or conceal the funds.
With the ruling in effect, any individual or entity attempting to move the funds in violation of the freeze order faces contempt of court charges and severe legal consequences.
The case will soon enter a pivotal phase. Legal actions across multiple jurisdictions are set to intensify, and as further assets are uncovered, those involved will face clearer legal repercussions.
This case carries far-reaching implications extending beyond a single stablecoin. It addresses not only investor protection but also broader challenges in global stablecoin governance, custodial reliability, and cross-border financial crime regulation. As the digital financial landscape evolves, this litigation may set an important precedent for transparency standards across the stablecoin industry.
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