Dubai Court Freezes $456 Million Amidst TrueUSD Issuer Dispute
Dubai's Digital Economy Court has issued a worldwide freezing order for $456 million, funds linked to Justin Sun's bailout of TrueUSD issuer Techteryx. The court's decision aims to prevent the dissipation of assets while ownership is determined.
Key Takeaways
- A Dubai court has frozen $456 million connected to the TrueUSD stablecoin.
- The funds are linked to a bailout orchestrated by Justin Sun for the stablecoin's issuer, Techteryx.
- The dispute involves allegations of reserve funds being improperly transferred to a trade-finance firm.
- This marks the first worldwide freezing order issued by Dubai's Digital Economy Court.
The Core of the Dispute
The substantial sum frozen by the Dubai court is related to a reserve shortfall that necessitated Justin Sun's intervention to support TrueUSD token holders. The central issue revolves around whether funds from TrueUSD's reserves were inappropriately diverted to Aria Commodities DMCC, a Dubai-based firm specializing in trade finance for commodities, mining, and other ventures in emerging markets.
Allegations and Court Findings
Techteryx, the claimant, alleges that these transfers, which occurred in 2021 and 2022 via accounts managed by Hong Kong trustee First Digital Trust, breached custody agreements. Techteryx contends that these actions converted cash reserves into long-term loans and private deals that became irredeemable when stablecoin holders sought to withdraw their funds.
In contrast, Matthew Brittain, the financier controlling Aria Group, has previously stated that liquidity issues were a matter of term commitments, asserting that ARIA CFF never presented itself as highly liquid or suitable for stablecoin reserves.
Justice Michael Black KC, in his October 17, 2025 ruling, found that Techteryx had presented "serious issues to be tried." He ordered the funds to be frozen to safeguard them from being moved or hidden before Hong Kong courts could adjudicate ownership. Justice Black noted that Techteryx had established a credible claim of a constructive trust over the funds. He also highlighted a "real risk" that Brittain might attempt to dissipate or restructure assets to obstruct any future judgment enforcement.
A Landmark Ruling
This ruling is significant as it represents the inaugural worldwide freezing order issued by Dubai's Digital Economy Court, underscoring the court's expanding role in digital asset disputes.