Dubai Court Freezes $456 Million in TrueUSD Fraud Case Linked to Justin Sun’s Techteryx Bailout

A judge at the Dubai International Financial Centre (DIFC) has enacted a global freeze on $456 million in assets connected to the alleged misappropriation of TrueUSD (TUSD) stablecoin reserves, a case associated with Tron founder Justin Sun’s earlier bailout of the token.

Key Takeaways:

A Dubai court has mandated a worldwide freeze on $456 million in assets related to the suspected misallocation of TrueUSD reserves.
The injunction specifically targets Dubai-based Aria Commodities DMCC, which is accused of receiving the funds instead of the designated reserve account.
Justin Sun, founder of Tron, previously intervened to cover the $456 million deficit to safeguard TUSD holders.

H.E. Justice Michael Black KC of the DIFC Digital Economy Court has ordered that both proprietary and worldwide injunctions against Dubai-based Aria Commodities DMCC remain in place, preventing the firm from transferring or engaging with any assets valued up to $456 million.

Dubai Judge Extends Global Freeze on $456 Million Linked to TrueUSD Case

The order was issued in an amended judgment on October 17.

“I direct that the following injunctions shall remain continued until further order of the Court: a worldwide freezing injunction, prohibiting the First Defendant [Aria DMCC] from removing any of its assets located in Dubai valued at up to USD 456,000,000,” Justice Black stated in the ruling.

This decision follows an ongoing legal dispute involving Techteryx Ltd, the operator of the TrueUSD stablecoin, and various financial institutions, including Aria Commodities DMCC, Mashreq Bank PSC, Emirates NBD Bank PJSC, and Abu Dhabi Islamic Bank PJSC.

According to court filings, Techteryx, which acquired TrueUSD in 2020, was unable to redeem a significant amount of its US dollar reserves managed by First Digital Trust between 2022 and 2023.

Investigations revealed that instead of being maintained in the appropriate reserve account in the Cayman Islands, the funds were allegedly redirected by First Digital Trust to Aria Commodities DMCC in Dubai.

Techteryx's legal counsel, Al Tamimi & Co, indicated that the reserves were originally held in Hong Kong, and between May 2021 and March 2022, around $468 million was reportedly invested in the Aria Commodity Finance Fund, with almost $456 million transferred directly to Aria Commodities DMCC.

The misdirected funds led to claims of breach of trust and knowing receipt, which resulted in the proprietary injunction and subsequent global asset freeze.

Justin Sun Vows Global Pursuit of $456 Million in Missing TrueUSD Funds

In a post on X, Sun commended the DIFC Court’s decision, confirming that Techteryx remains committed to tracking and recovering the missing funds.

“This serves as a strong notice to all individuals knowingly involved in global scam operations of ARIA. You can run, but you cannot hide; we will pursue you wherever you are,” Sun declared.

The DIFC Court’s injunctions will stay in effect until further orders are issued, as Techteryx continues its efforts to recover the missing TUSD reserves.