Dubai Court Freezes $456M Linked to Justin Sun’s Bailout of TrueUSD Issuer Techteryx
Dubai's Digital Economy Court has frozen $456 million tied to Justin Sun's bailout of Techteryx, the issuer of the TrueUSD stablecoin, due to alleged breaches of trust. The case centers on claims that TrueUSD's reserves were improperly diverted into Aria Commodities DMCC, a Dubai-based firm operating in trade finance and commodity shipment, causing a substantial reserve shortfall for TrueUSD holders. Transfers made to Aria by Hong Kong trustee First Digital Trust, between 2021 and 2022, are questioned by Techteryx, which argues these funds were converted into illiquid loans, making them unavailable for redemptions when needed. Justice Michael Black KC ruled that Techteryx's assertion of a constructive trust over the funds warranted a freeze to prevent any asset movement. This ruling is significant as it marks the first worldwide freezing order from Dubai's Digital Economy Court.
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