Justin Sun bailed out Techteryx's TrueUSD stablecoin after nearly half a billion dollars of its reserves were rendered illiquid

After acquiring TrueUSD from TrueCoin in December 2020, Techteryx appointed First Digital Trust (FDT), a Hong Kong-based fiduciary

Justin Sun, the cryptocurrency entrepreneur known for his role at Tron and involvement in various blockchain projects, bailed out Techteryx's TrueUSD stablecoin after nearly half a billion dollars of its reserves were rendered illiquid, sources close to the matter confirmed, and the stablecoin issuer said in Hong Kong court documents.

After acquiring TrueUSD from TrueCoin in December 2020, Techteryx appointed First Digital Trust (FDT), a Hong Kong-based fiduciary, to manage its stablecoin reserves.

The funds were to be invested in the Aria Commodity Finance Fund (Aria CFF), a Cayman Islands-registered vehicle, according to documents prepared by U.S. law firm Cahill Gordon & Reindel.

However, approximately $456 million was instead improperly diverted into Aria Commodities DMCC, a separate, unauthorized entity based in Dubai, court filings allege.

Court documents identify Matthew Brittain as controlling Aria Commodity Finance Fund (Aria CFF) through Aria Capital Management Ltd and Cecilia Brittain as the sole shareholder of the separately owned Dubai-based entity Aria Commodities DMCC.

However, emails from Aria's Matthew Brittan are signed with an address in Dubai.

Court documents say that Cecilia is Matthew's wife.

ARIA DMCC engages in trade finance, asset development, and commodity trading, while ARIA CFF finances commodity traders, including ARIA DMCC and third parties, according to Matthew Brittain, who described the relationship between the two companies in an email to CoinDesk.

Attestations produced by Moore CPA Limited show that FDT managed $501 million of TrueUSD's reserves by November 2024.

Hong Kong court filings say Chok allegedly directed around $15.5 million in undisclosed commissions to an entity called "Glass Door" and separately structured approximately $15 million in unauthorized trade finance loans from FDT to Aria DMCC, later retroactively mischaracterizing them as legitimate fund investments in actions plaintiffs describe as fraudulent misrepresentation and misappropriation.

"The remittances to Aria DMCC were blatant misappropriation and money-laundering," a statement of claim reads. "They were made without the knowledge, authorization or approval of the Plaintiff."

These statements have not been tried in court as of press time.

Aria DMCC invested funds in global projects that they described as relatively illiquid, such as manufacturing plants, mining operations, maritime vessels, port infrastructure, and renewable energy ventures.

When Techteryx attempted to redeem its investments from Aria CFF between mid-2022 and early 202,3 it received little or no funds back, with Aria entities allegedly defaulting on payments and failing to fulfill redemption requests, the court documents say.

Techteryx then took full operational control of TUSD in July 2023, terminating TrueCoin's involvement. As part of a transitional period following the December 2020 sale, TrueCoin continued running the day-to-day operations of TUSD.

According to court filings, Sun stepped in around this time to provide emergency liquidity support, which was structured as a loan.

The Techteryx team then quarantined 400 million TUSD so that retail redemptions could continue and token holders wouldn't be affected, despite the stablecoin issuer's empty coffers, the court filings said.

First Digital says it followed Techteryx's instructions

In response to a request for comment from CoinDesk, Vincent Chok, First Digital's CEO, categorically denied any wrongdoing or participation in fraudulent schemes.

Chok told CoinDesk that First Digital Trust acted strictly as a fiduciary intermediary, executing transactions precisely according to instructions provided by Techteryx and its representatives. He asserted that his company was not responsible for independently evaluating or advising on these investment decisions.

"It is our understanding that one of the main blockers voiced by ARIA for early redemptions of funds (as requested by Techteryx) has been their AML/KYC concerns regarding the deal between TrueCoin and Techteryx and the true identity of the ultimate beneficial owner of Techteryx," Chok said in an email to CoinDesk, adding that he believed nobody named in the case considers Aria illiquid.

"We have not yet had the opportunity to fully defend ourselves," Chok said in an email to CoinDesk. "We are fully committed to clarifying these matters in due course as the legal and arbitration process continues."

Aria Group's Matthew Brittain said to CoinDesk that 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."

Techteryx was fully aware of term commitments, Brittain said, and these were outlined in contracts that subscribers agreed to when investing in ARIA CFF, which are clearly set out in the Offering Memorandum.

Brittain also echoed Chok's concerns about Techteryx's beneficial ownership, pointing to Wall Street Journal coverage of the topic.

The Hong Kong writ