Tron (TRX) Founder Justin Sun May Have Averted a Major Catastrophe in the Crypto Market! He saved the stablecoin that was about to go under!

According to Hong Kong court documents and sources close to the matter, Tron founder Justin Sun provided TrueUSD with a (TUSD) financial lifeline after nearly half a billion dollars of its reserves became inaccessible.

The parent company of TUSD, Techteryx, purchased the stablecoin from TrueCoin in December 2020 and appointed First Digital Trust, a Hong Kong-based custodian, to manage its reserves. However, the U.S. law firm Cahill Gordon & Reindel claims in court filings that FDT was instructed to invest the reserves in the Aria Commodity Finance Fund, a vehicle registered in the Cayman Islands. Instead, it is alleged that approximately $456 million was transferred to Aria Commodities DMCC, a separate and unauthorized organization based in Dubai.

Court documents identify Matthew Brittain as the controller of Aria CFF through Aria Capital Management Ltd., while his wife Cecilia Brittain is listed as the sole shareholder of Aria Commodities DMCC.

Aria DMCC specializes in trade finance, asset development, and commodity trading, while Aria CFF finances commodity investors, including Aria DMCC and third parties. Despite the alleged mismanagement, attestation reports from Moore CPA Limited showed that FDT oversaw $501 million in reserves of TUSD as of November 2024.

Hong Kong court filings also allege that First Digital CEO Vincent Chok transferred approximately $15.5 million in undisclosed kickbacks to an organization called "Glass Door" and structured another $15 million for unauthorized trade finance loans from FDT to Aria DMCC. The plaintiffs describe these actions as fraudulent misrepresentation and embezzlement, but none of these allegations have been proven in court.

It has been reported that Aria DMCC invests funds in relatively illiquid global projects, including manufacturing facilities, mining activities, maritime vessels, and renewable energy initiatives. When Techteryx wanted to withdraw its investments from Aria CFF between mid-2022 and early 2023, it is alleged that the company did not return the funds and defaulted on payments.

As of July 2023, Techteryx assumed full operational control of TUSD, ending TrueCoin's participation. In response to the liquidity crisis, Sun stepped in to provide emergency liquidity support structured as loans. The Techteryx team then temporarily quarantined 400 million TUUSD to ensure that retail repayments continued without impacting token holders despite the issuer's financial difficulties.

In response to the allegations, First Digital's Chok denied that FDT had committed any wrongdoing, arguing that FDT only conducted transactions according to Techteryx's instructions and did not independently evaluate the investments.

Chok claimed that Aria CFF's reluctance to fulfill the repayment requests stemmed from concerns regarding Techteryx's ownership structure.