Justin Sun Quietly Bailed Out TUSD as $456 Million in Reserves Became Inaccessible

$456M in Limbo: How TUSD’s Liquidity Crisis Triggered a Justin Sun Bailout

In a tangled web of financial missteps, court filings now reveal that nearly half a billion dollars meant to back the TrueUSD (TUSD) stablecoin were caught in unauthorized investments—prompting crypto mogul Justin Sun to step in with an emergency rescue.

After acquiring TUSD from TrueCoin in 2020, Techteryx handed reserve management to First Digital Trust (FDT) in Hong Kong. But behind the scenes, a troubling shift was already underway. Instead of placing funds into a designated vehicle—Aria Commodity Finance Fund (CFF)—court documents say FDT redirected $456 million into Aria Commodities DMCC, a Dubai-based firm outside the original investment scope.

That transfer, Techteryx claims, was never authorized. The fallout? Massive liquidity problems that left TUSD unable to fulfill redemptions from mid-2022 through early 2023.

According to legal filings, the deal was orchestrated by Aria’s Matthew Brittain, with involvement from his wife, Cecilia. The investments were channeled into illiquid ventures including mining, shipping, and infrastructure. FDT’s CEO, Vincent Chok, is also accused of pocketing over $15 million in undisclosed commissions during the process.

Facing a full-blown redemption crisis, Techteryx wrestled back control of TUSD’s operations in mid-2023. But with funds locked and user confidence on the brink, Justin Sun emerged as a key backer. He reportedly provided a short-term liquidity loan, giving the project room to breathe and keeping the stablecoin afloat.

To protect users, Techteryx placed 400 million TUSD into quarantine, shielding redemptions despite empty coffers.

Meanwhile, FDT denies wrongdoing, claiming it followed Techteryx’s instructions. Aria, too, rebuffs the fraud allegations, saying all terms were clear and agreed upon. Both parties now brace for a lengthy legal battle.

Complicating matters further, former TUSD partners TrueCoin and TrustToken settled with the SEC in late 2024 over misleading investors about reserve practices—further shaking confidence in the project.

While TUSD remains operational, the ongoing legal fallout raises serious questions about transparency and trust in the stablecoin ecosystem—and whether other projects may be just one bad investment away from crisis.