Tron founder Justin Sun has provided a financial lifeline to TrueUSD (TUSD) after nearly half a billion dollars in its reserves became inaccessible, according to Hong Kong court documents and sources familiar with the matter.
TUSD’s parent company, Techteryx, acquired the stablecoin from TrueCoin in December 2020 and appointed a Hong Kong-based trustee, First Digital Trust (FDT), to manage its reserves. However, US law firm Cahill Gordon & Reindel alleges in court filings that FDT was instructed to deposit the reserves into Aria Commodity Finance Fund (Aria CFF), a Cayman Islands-registered vehicle. Instead, around $456 million was allegedly transferred to a separate and unauthorized entity, Aria Commodities DMCC, based in Dubai.
Court documents identify Matthew Brittain as the controller of Aria CFF through Aria Capital Management Ltd., while his wife, Cecilia Brittain, is listed as the sole shareholder of Aria Commodities DMCC.
Aria DMCC specializes in trade finance, asset development, and commodities trading, while Aria CFF finances commodities investors, including Aria DMCC and third parties. Despite the alleged mismanagement, Moore CPA Limited’s attestation reports showed that FDT oversaw $501 million in TUSD reserves as of November 2024.
Hong Kong court filings also allege that First Digital CEO Vincent Chok funneled approximately $15.5 million in undisclosed kickbacks to an entity called “Glass Door” and structured another $15 million in unauthorized trade finance loans from FDT to Aria DMCC. The plaintiffs describe these actions as fraudulent misrepresentation and embezzlement, but neither of these allegations has been proven in court.
Aria DMCC reportedly invested funds in relatively illiquid global projects, including manufacturing facilities, mining operations, marine vessels, and renewable energy initiatives. When Techteryx sought to reclaim its investments from Aria CFF between mid-2022 and early 2023, the firm allegedly failed to return the funds and defaulted on payments.
As of July 2023, Techteryx has assumed full operational control of TUSD, ending TrueCoin’s involvement. In response to the liquidity crisis, Sun stepped in to provide emergency liquidity support structured as a loan. The Techteryx team subsequently temporarily quarantined 400 million TUSD to ensure retail redemptions could continue without impacting token holders despite the issuer’s financial difficulties.
In response to the allegations, First Digital’s Chok denied any wrongdoing, arguing that FDT only executed the transactions on Techteryx’s instructions and did not independently evaluate the investments.
Chok suggested that Aria CFF's reluctance to comply with refund demands was due to concerns about Techteryx's ownership structure.
*This is not investment advice.
