Justin Sun Addresses TrueUSD Controversy
In a notable public appearance, Justin Sun addressed the ongoing controversy surrounding the $456 million discrepancy in the reserves of TrueUSD (TUSD) at a media event in Hong Kong on November 27. Titled “Truth Unveiled, Justice Revealed,” this event marked a more pronounced and assertive approach by Sun amidst a series of legal challenges spanning multiple jurisdictions.
Allegations of Misconduct
Sun elaborated on the alleged misconduct related to TUSD’s reserves, asserting that partners responsible for managing these funds had engaged in dubious investment practices from 2021 to 2022. He specifically identified First Digital Trust and Aria Commodities as key figures in what he described as an abuse of regulatory weaknesses in Hong Kong’s trust oversight mechanisms. He claimed that the reserves had been misallocated into high-risk commodity financing and mining projects, which became illiquid during recent spikes in TUSD redemptions.
Emergency Intervention and Regulatory Response
The urgency of the situation prompted Sun to inject approximately $500 million to stabilize the stablecoin during significant market pressures earlier this year, in 2025. Sun expressed his support for the recent global asset freeze imposed by Dubai’s DIFC Court, regarding it as a pivotal development that could aid in recovering the diverted funds, which he contends should have remained under proper custodial control.
Moreover, Sun urged regulatory bodies in Hong Kong to enhance their oversight of trust service providers, highlighting the necessity of coordinated international enforcement as evidenced by the current disputes.
Background of the Controversy
The controversy began earlier this year, when a $456 million shortfall in TUSD’s reserves was revealed. Techteryx, the issuing entity for TUSD, accused its custodians of inappropriately redirecting funds through transactions that breached the established trust agreement, thereby placing the assets under Aria Commodities’ management, a firm connected with financier Matthew William Brittain. The situation deteriorated as these positions became increasingly difficult to liquidate amidst rising market tension, threatening the stability of the stablecoin.
As Techteryx pursued legal recourse in Hong Kong and Dubai to reclaim the missing assets, Sun’s emergency intervention provided temporary relief. By mid-October, the Dubai financial court acknowledged credible fears regarding potential asset transfer or concealment, resulting in a global asset freeze that was later extended. While TUSD has maintained its peg since the capital infusion, the mounting regulatory scrutiny in Hong Kong and Dubai remains a pressing concern as courts work to resolve the legal ownership of the misappropriated reserves.
