 — Justin Sun gave emergency financial support to stabilize the TUSD stablecoin, according to court documents from Hong Kong. The funding came after $456 million in TUSD reserves was allegedly redirected without approval to Aria Commodities DMCC, a Dubai-based trade finance company. The documents show First Digital Trust, which was supposed){kind=link}
YEREVAN (CoinChapter.com) — Justin Sun gave emergency financial support to stabilize the TUSD stablecoin, according to court documents from Hong Kong. The funding came after $456 million in TUSD reserves was allegedly redirected without approval to Aria Commodities DMCC, a Dubai-based trade finance company.
The documents show First Digital Trust, which was supposed to manage the reserves, moved the funds to Aria Commodities DMCC instead of the approved Aria CFF, based in the Cayman Islands. Both companies are connected to Matthew Brittain and Cecilia Brittain.
Techteryx, the firm that acquired TUSD in December 2020, said the move caused a liquidity crisis. The redirection of reserves into commodity and energy projects—described as illiquid—made it difficult to meet redemption requests.
Techteryx Faced Redemption Issues With TUSD Stablecoin
Between mid-2022 and early 2023, Techteryx tried to redeem funds but faced delays and defaults. The company said these failures came from Aria Commodities DMCC, which held the diverted TUSD reserves.
Court filings say the investments did not match the agreed plan. Techteryx also claimed it never approved the transactions and called the payments to external firms, including Glass Door, unauthorized.
The legal complaint says First Digital Trust failed in its role by sending funds to a firm outside the original plan. The documents also point to missed redemptions that created a direct threat to the TUSD stablecoin’s peg.
By mid-2023, the situation worsened. Techteryx then asked Justin Sun for help. He provided emergency funding in the form of a loan. This support helped Techteryx isolate $400 million in TUSD reserves, separating it from the troubled assets.
The quarantine allowed regular user redemptions to continue. Although Justin Sun had previously distanced himself from the stablecoin, the court papers show he took part in the rescue. In July 2023, Techteryx officially took over full control of TUSD stablecoin operations. The role of TrueCoin, the original manager, ended during this transition.
Stablecoin Entities Tied to Brittain Family
The filings name Matthew Brittain as the person behind Aria CFF, acting through Aria Capital Management. His wife, Cecilia Brittain, is listed as the sole owner of Aria Commodities DMCC.
Though the companies appeared separate, the documents suggest financial connections. One note in the filings shows Matthew Brittain confirming that the two firms were tied together. These ties became important as the court tried to track the path of the TUSD reserves. The documents say several payments from Aria failed, adding pressure on Techteryx and weakening the support behind the TUSD stablecoin.
Vincent Chok, CEO of First Digital Trust, denied wrongdoing. He said the company acted within its fiduciary duties and followed all instructions. Matthew Brittain also denied any misconduct. He said all transfers and actions taken were within the scope of the agreements made with Techteryx.
Despite these claims, the TUSD stablecoin saw a loss in market confidence. In January 2024, the stablecoin dropped below $1. Reports linked the drop to whale sell-offs and on-chain activity.
Binance Removes TUSD Stablecoin From Staking Program
After the price deviation, Binance removed the TUSD stablecoin from its staking program for MANTA. This happened shortly after the stablecoin lost its dollar peg.
Court action continues in Hong Kong as Techteryx pursues claims of misused funds, unauthorized transactions, and failed redemptions related to Aria Commodities DMCC, First Digital Trust, and related parties.