Justin Sun discreetly stepped in to stabilize TrueUSD (TUSD) after a major liquidity crisis threatened the stablecoin’s reserves. Despite publicly distancing himself, recent Hong Kong court filings reveal that the Tron founder provided emergency funding when $456 million in reserves were allegedly misappropriated.
Techteryx, which acquired TrueUSD in December 2020, had entrusted Hong Kong-based First Digital Trust (FDT) with managing TUSD’s reserves. However, court documents suggest that instead of following the agreed structure, FDT redirected $456 million of TUSD’s assets into Aria Commodities DMCC, a Dubai-based entity specializing in trade finance and commodities. This diversion of funds led to significant liquidity challenges, as Aria’s investments were highly illiquid, spanning mining and renewable energy projects that complicated fund retrieval efforts.
FDT was originally instructed to allocate TUSD’s reserves to the Aria Commodity Finance Fund (Aria CFF), a Cayman Islands-registered vehicle. However, the unauthorized reallocation of funds caused severe liquidity issues for Techteryx, which struggled to redeem its investments between mid-2022 and early 2023. Court filings state that Techteryx faced repeated defaults and missed payments from the Aria entities, putting the stablecoin’s reserves at serious risk. The firm alleges misrepresentation and misappropriation of funds, emphasizing that these investments were not aligned with its directives.
Further complicating the situation, Matthew Brittain, the controlling figure behind Aria CFF through Aria Capital Management, and his wife, Cecilia Brittain, the sole owner of Aria Commodities DMCC, have come under legal scrutiny. Despite the entities appearing separate on paper, court documents indicate that they were closely linked. Brittain allegedly acknowledged the financial connections between them.
As the crisis deepened in mid-2023, Techteryx sought emergency assistance from Justin Sun. The Tron founder intervened by providing financial support in the form of a structured loan, ensuring continued liquidity and stabilizing retail redemptions. This intervention allowed Techteryx to isolate $400 million of TUSD, effectively protecting everyday users from the reserve shortfall.
In July 2023, Techteryx assumed full control of TUSD, officially removing TrueCoin from its operations. The company’s legal action now highlights allegations of financial mismanagement, pointing to unauthorized payments and undisclosed commissions funneled to entities like “Glass Door.”
Meanwhile, FDT’s CEO, Vincent Chok, has defended his firm’s actions, insisting that FDT acted solely in its fiduciary capacity. In contrast, Matthew Brittain has dismissed the allegations, claiming that all transactions were transparent and in accordance with agreed-upon terms.
In January, TUSD briefly lost its $1 peg, attributed to large sell-offs by whales. Reports also indicate that Binance has removed TUSD from the list of cryptocurrencies eligible for staking to earn MANTA. The unfolding legal battle continues to shed light on the financial turbulence surrounding TUSD, raising questions about the stablecoin’s long-term stability and governance.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist