Justin Sun Yuchen Extends US$460 Million Lifeline to TrueUSD Stablecoin Issuer Techteryx, Aiding in Replenishing Reserves and Averting Collapse

Chinese cryptocurrency entrepreneur Justin Sun Yuchen has revealed that he extended approximately US$460 million (HK$3.6 billion) to assist Techteryx, the investment firm managing the stablecoin TrueUSD

Chinese cryptocurrency entrepreneur Justin Sun Yuchen has reportedly extended approximately US$460 million (HK$3.6 billion) to help the investment firm managing the stablecoin TrueUSD replenish its reserves and prevent the token from collapsing, according to a report by Blockvisio.

The contribution by Sun, known for his role in leading TRON and heading the BitTorrent chain, comes in response to a lawsuit filed by Techteryx in the High Court of Hong Kong. The lawsuit accuses First Digital Trust chief executive Vincent Chok and Singapore-licensed fund manager Yai Sukonthabhund of engaging in fraudulent activity to secure over US$500 million in trust deposits.

According to the legal filings, Techteryx acquired the TrueUSD business from TrueCoin in December 2020, which was partly motivated by its partnership with a Hong Kong trust firm. After the acquisition, Techteryx entrusted TrueCoin with the operation of TUSD and followed its guidance to deposit US$500 million in reserves with First Digital Trust (FDT). However, these funds were later invested in the Aria Commodity Finance Fund, a mutual fund based in the Cayman Islands.

On Thursday, Sun took to X to communicate that FDT is effectively insolvent and unable to fulfill client redemption requests. He urged users to act swiftly to safeguard their assets.

"I would like to remind everyone that FDT is currently insolvent and unable to meet the request for redemption from clients. If you have any outstanding claims with FDT, please take immediate steps to protect your assets and pursue recovery through legal channels," said Sun.

According to court documents, Sun intervened to provide emergency funding for Techteryx’s TrueUSD (TUSD) stablecoin after the reserves became nearly inaccessible.

The troubles began after Techteryx’s acquisition of TrueUSD, following which it appointed FDT, based in Hong Kong, to manage stablecoin reserves, with specific instructions that FDT is accused of disregarding.

Court records compiled by the U.S. law firm Cahill Gordon & Reindel indicate that FDT was directed to invest the stablecoin reserves into the Aria Commodity Finance Fund (Aria CFF), yet over $456 million was allegedly misappropriated into Aria Commodities DMCC, an unapproved Dubai-based entity.

The court documents highlight that Matthew Brittain controls the Aria Commodity Finance Fund via Aria Capital Management Ltd, while Cecilia Brittain is the sole shareholder of Aria Commodities DMCC. The documents further note that the Brittain couple is married, with Matthew claiming that ARIA DMCC is engaged in trade finance and commodity trading, while ARIA CFF finances commodity traders, including ARIA DMCC and others.

Attestations from Moore CPA Limited reveal that FDT managed $501 million of TrueUSD’s reserves as of November 2024. Hong Kong court filings also suggest that Vincent Chok allegedly moved $15.5 million in undisclosed commissions to an entity named “Glass Door” and facilitated around $15 million in unauthorized trade finance loans from FDT to Aria DMCC, which were later mischaracterized as legitimate fund investments—actions described by plaintiffs as fraudulent misrepresentation and misappropriation.

Techteryx encountered significant difficulty in redeeming its investments from Aria CFF between mid-2022 and early 2023, receiving minimal returns due to payment defaults from Aria entities. In response, Techteryx took full operational control of TUSD in July 2023 and terminated TrueCoin’s role in the stablecoin’s management.

Court filings claim that during this period, Justin Sun offered emergency liquidity support, structured as a loan, enabling the Techteryx team to quarantine $400 million of TUSD to ensure continued retail redemptions and protect token holders amid the issuer’s financial distress.

Following news of Techteryx’s actions against FDT, Justin Sun issued a post on X, warning users of FDT’s insolvency and urging them to take immediate steps to protect their assets. He highlighted significant gaps in Hong Kong’s trust licensing processes and internal financial risk management.

Sun called on regulators and law enforcement to take swift action to mitigate further financial losses and preserve Hong Kong’s reputation as a global financial hub. He invited those interested in learning more to attend a press conference on 3rd April at 2pm HKT.

In response to the allegations, First Digital's CEO, Vincent Chok, denied any wrongdoing, stating that the company acted strictly as a fiduciary intermediary, executing transactions based on Techteryx's instructions. He maintained that the firm had no obligation to independently assess these investment decisions.

Matthew Brittain of the Aria Group also refuted Techteryx's claims, asserting that the company was fully aware of the terms agreed upon prior to their investment in Aria CFF. He expressed concerns regarding the ownership of Techteryx, which he believes is ultimately held by Li Jinmei, a matter that plaintiffs described as an attempt to deceive the court.