A Dubai court has affirmed its decision to impose a worldwide freezing order on $456 million in assets linked to the alleged fraudulent diversion of reserves backing the TrueUSD (TUSD) stablecoin. The ruling, upheld by Justice Michael Black KC of the Dubai International Financial Centre (DIFC) Courts, continues an injunction first issued on October 17. It prohibits Dubai-based Aria Commodities DMCC from moving or diminishing the value of the assets, marking the first global freezing order of its kind from the city’s Digital Economy Court.
Alleged Misappropriation of Reserves
According to court documents, the legal action centers on funds that TUSD operator Techteryx Ltd. entrusted to Hong Kong-based custodian First Digital Trust. Techteryx appointed the firm to manage $468 million in reserves intended for a Cayman Islands-registered investment fund.
Counsel for Techteryx, Al Tamimi & Co., claims that between May 2021 and March 2022, approximately $456 million was instead remitted directly to Aria Commodities DMCC in Dubai. The funds were then allegedly placed in high-risk, illiquid investments, including commodity shipping and mining operations.
This redirection of capital led to a liquidity crisis in late 2022 and early 2023 when Techteryx was unable to process TUSD redemptions for its token holders, threatening the stablecoin’s 1:1 peg to the U.S. dollar.
Sun’s Bailout and Legal Fallout
The reserve shortfall forced Techteryx to seek emergency funding. Justin Sun, the founder of Tron and an alleged ultimate beneficial owner of Techteryx according to Hong Kong court filings, provided the necessary liquidity to cover the missing reserves.
In a post on the social media platform X, Sun confirmed the court’s recent decision. “I am pleased to see that progress has been made in Techteryx’s pursuit for justice and restitution of the missing funds,” Sun stated on November 13. He described the funds as “siphoned-off by a group of fraudsters involving ARIA group, First Digital Trust and Legacy Trust, among others.”
Justice Black’s judgment noted a “real risk” that the assets could be dissipated. The court found that Aria provided “no evidence” to explain the fund transfers or the ownership of assets purchased with the money.
Court filings identify Matthew William Brittain as the controlling party of the Cayman Islands fund and his wife, Cecilia Brittain, as the sole shareholder of Aria Commodities DMCC in Dubai. Techteryx initiated legal proceedings in Hong Kong against First Digital Trust, Aria Commodities, and related entities on December 19, 2023.
Chain Street Take
Dubai’s DIFC Court has issued a landmark worldwide freezing order on $456 million in assets allegedly misappropriated from TrueUSD reserves. The ruling, targeting Aria Commodities DMCC and linked entities, underscores the risks of offshore stablecoin custody and sets a precedent for cross-border crypto enforcement.
Sun’s emergency bailout preserved TUSD liquidity, but the case highlights enduring vulnerabilities in stablecoin governance and the need for stronger international regulatory oversight.
