Justin Sun quietly rescues TUSD after $456 million reserves become illiquid

Key Takeaways

• Justin Sun provided emergency funding to stabilize TrueUSD amid a $456 million liquidity crisis.
• TUSD issuer Techteryx claims large-scale fraud led to unauthorized investments by its fiduciary.

Justin Sun, the founder of TRON, quietly provided emergency funding to stabilize TrueUSD (TUSD) after $456 million of the stablecoin’s reserves became illiquid, Hong Kong court documents have revealed. The details were first reported by CoinDesk.

TUSD’s owner, Techteryx, after acquiring TrueUSD in 2020, entrusted First Digital Trust (FDT) to manage the stablecoin’s reserves, according to the filings. FDT is claimed to have directed funds into the Aria Commodity Finance Fund (Aria CFF), a Cayman Islands-registered investment vehicle.

However, instead of remaining within the agreed structure, $456 million allegedly went to Aria Commodities DMCC, a separate Dubai-based entity specializing in trade finance, commodity trading, and infrastructure projects, without approval.

The investments were largely illiquid, tied to assets like manufacturing plants, mining operations, and port infrastructure, making them difficult to quickly redeem. This led to a severe liquidity shortage between 2023 and early 2024, leaving TUSD’s reserves in limbo.

Court records identify Matthew Brittain as controlling Aria CFF through Aria Capital Management Ltd, while Cecilia Brittain is listed as the sole shareholder of Aria Commodities DMCC. Despite these separate ownership structures, documents suggest the two entities were deeply intertwined.

Sun’s role in stabilizing TrueUSD

By mid-2023, as TUSD faced mounting liquidity pressures, Sun reportedly stepped in with emergency funding to ensure that retail redemptions could continue.

With his financial assistance, Techteryx set aside 400 million TUSD, effectively quarantining the troubled reserves and maintaining user confidence.

Ongoing legal disputes

Techteryx has accused those involved of financial mismanagement, alleging that funds were misallocated to highly illiquid assets. When Techteryx sought to withdraw its investment, the firm allegedly received little to no funds back.

First Digital Trust has denied any wrongdoing, insisting that it followed Techteryx’s instructions precisely. CEO Vincent Chok stated that his company merely acted as a fiduciary and had no role in evaluating investment decisions.

Meanwhile, Aria Group’s Matthew Brittain dismissed Techteryx’s claims, asserting that all transactions were made with full transparency and in accordance with pre-agreed terms. He also pointed to ongoing disputes regarding Techteryx’s ownership structure, which some parties claim has remained unclear.