Justin Sun rescued Trueusd Stablcoin de Techteryx after almost half a billion dollars of his reserves became illegid, people close to the matter confirmed and the stablecoin issuer He said in Hong Kong court documents.
After acquiring Trueusd from Truecoin in December 2020, Techteryx appointed First Digital Trust (FDT), a Fiduciary with Hong Kong headquarters, to administer its Stablecoin reserves.
According to the documents prepared by the American law firm Cahill Gordon & Reindel, FDT was instructed to invest reservations in the Aria Commodity Finance Fund (Aria CFF), a vehicle registered in the Cayman Islands. However, judicial presentations allege that approximately $ 456 million deviated incorrectly to Aria Commodities DMCC, a separate and unauthorized entity based in Dubai.
Judicial documents identify Matthew Brittain as the control of the Finance Fund for the Basic Products of Aria (Aria CFF) through Aria Capital Management LTD and Cecilia Brittain as the only shareholder of the property entity separately from Dubai Aria Commodities DMCC.
However, Matthew Brittan’s emails are signed with a direction in Dubai.
Court’s documents say that Cecilia is Matthew’s wife.
ARIA DMCC is dedicated to commercial finances, the development of assets and the trade of basic products, while Aria CFF finances the merchants of basic products, including ARIA DMCC and third parties, according to Matthew Brittain, who described the relationship between the two companies in an email to Coindesk.
The certifications produced by Moore CPA Limited show that FDT achieved $ 501 million in Trueusd reserves in November 2024.
Hong Kong Court Filings Also Say Vincent Chok, First Digital’s Ceo, Allegedly Direction Around $ 15.5 million in undisclosed comissions to an entity street “Glass door” and separately Structured Approximately $ 15 million in unauthorized trade trace finance loans from Later retroactively Mischaracterizing Them as legitimate melt investments in actions plaintiffs describes as fraudulent misrepresent and improper appropriation.
“Remittances to Aria DMCC were a flagrant erroneous appropriation and money laundering,” says a claim statement. “They were made without the knowledge, authorization or approval of the plaintiff.”
These statements have not been tried in court since the moment of publication.
Aria DMCC invested funds in global projects that described As relatively ilequids, such as manufacturing plants, mining operations, maritime vessels, port infrastructure and renewable energy companies.
When Techteryx tried to redeem his investments from Aria CFF between mid -2012 and early 202.3, he received few or no funds, with Aria entities allegedly breaching payments and not complying with redemption requests, according to judicial documents.
Techteryx then took the complete operational control of Tusd in July 2023, ending Truecoin’s participation. As part of a transition period after the sale of December 2020, Truecoin continued to execute the daily operations of Tusd.
According to judicial documents, SUN intervened around this time to provide emergency liquidity support, which was structured as a loan.
The Techteryx team then contains 400 million of Tusd so that retolds could continue and the tokens holders would not be affected, despite the empty coffers of the Stablecoin issuer, according to judicial presentations.
First digital says that Techteryx’s instructions followed
In response to a request for comments from Coindesk, Chok of First Digital, categorically denied any irregularity or participation in fraudulent schemes.
Chok told Coendesk that First Digital Trust acted strictly as a fiduciary intermediary, executing precision transactions according to the instructions provided by Techteryx and his representatives. He affirmed that his company was not responsible for evaluating or advising independently on these investment decisions.
“We understand that one of the main blockers expressed by ARIA for the first fund reimbursements (as requested by Techteryx) has been his concern of AML/KYC regarding the agreement between Truecoin and Techteryx and the true identity of the beneficial owners of Techteryx,” Chok said in an email to Coindesk, and adds that he did not believe in the case of the case of the Cases Aria Illiquid.
“We have not yet had the opportunity to defend ourselves completely,” Chok said in an email to Coindesk. “We are totally committed to clarifying these issues in due time as the legal and arbitration process continues.”
Matthew Brittain of Aria Group told Coindesk that “completely rejects Techteryx’s claims against Aria DMCC and any related entity,” and added that “several false accusations were made in judicial procedures.”
Techteryx was fully aware of the term commitments, Brittain said, and these were described in contracts that subscribers agreed to invest in Aria CFF, which are clearly established in the offer memorandum.
Brittain also echoed Chok’s concerns about the beneficial property of Techteryx, pointing out the coverage of the Wall Street Journal theme.
Hong Kong’s writing identifies Li Jinmei as the best beneficial owner of Techteryx. A Techteryx spokesman confirmed that this is not the same person as Jennifer Yiyang, the beneficial owner of the previous company, despite the fact that some media report otherwise.
“The subscriber has not solved these problems,” Brittain continued, referring to beneficial property concerns.
Prime Trust Collapse Challenges and SEC Agreement
While this was happening, Tusd’s challenges continued in the form of a collapant banking partner and regulatory scrutiny in the United States
In mid -2023, Prime Trust, an independent cryptographic custodian based in Nevada that is not connected to this case, but that Trueusd used for its fiduciary ramps, was put bankrupt by state regulators.
State regulators alleged that Prime Trust had incorrectly used customer funds to cover retirement requests, which raised serious concerns about their financial stability.
Nevada’s judicial presentations showed that Prime Trust owed around $ 85 million in fiduciary obligations with only around $ 3 million available.
This was not the last headache for the Stablecoin issuer.
In September 2024, Truecoin and Trustoken (the owners of Stablcoin before Techteryx) were established with the SEC about the accusations that Trueusd falsely marketed as completely backed by dollar while they secretly invested reserves in high seas funds on the high seas.
Without admitting irregularities, or detailing the nature of their investments abroad with Aria companies, both Truecoin and Trustoken agreed to pay civil sanctions and reject profits for just over $ 500,000 to solve fraud charges and offers of unregistered values.
For his part, Britrain de Aria said that investing in Aria was not the right movement to start for the reserves of a stablecoin.
“Aria CFF has never sustained [its] Strategy as highly liquid or appropriate for a stablecoin reserves, “he said in an email.
