Justin Sun bangelled Justin Sun’s stablecoin from Techteryx after almost half a billion dollars of his reserves were made unliquid, confirmed people close to the case and the stablecoin transmitter said in the court documents of Hong Kong.
After acquiring Trueusd de Truecoin in December 2020, Techteryx appointed First Digital Trust (FDT), a trustee based in Hong Kong, to manage its stabbing reserves.
According to documents prepared by the American law firm Cahill Gordon & Reindel, the FDT was invited to invest the reserves of Aria Commodity Finance Fund (ARIA CFF), a registered vehicle of the Cayman Islands. However, legal files allege that around $ 456 million have rather been diverted from Aria DMCC products, a separate and unauthorized entity based in Dubai.
Documents identify Matthew Brittain as controlling Aria Commodity Finance Fund (ARIA CFF) by Aria Capital Management Ltd and Cecilia Brittain as the only shareholder of the entity separately based in Dubai Aria Commodities DMCC.
However, the emails of Matthew Brittan d’Aria are signed with an address in Dubai.
The court documents claim that Cecilia is the wife of Matthew.
ARIA DMCC is committed to the financing of trade, the development of assets and the trading of raw materials, while Aria CFF finances the merchants of raw materials, including Aria DMCC and third parties, according to Matthew Brittain, who described the relationship between the two companies in an email in Coindesk.
Attates produced by Moore CPA Limited show that the FDT has managed $ 501 million from Trueusd reserves by November 2024.
Hong Kong Court Filings Also Say Vincent Chok, First Digital’s CEO, Allegedly Direct Around $ 15.5 million in Undisclosed Commissions to an Entity Called “Glass Door” and Separaly Structured Approximataly $ 15 million in unauthorized finance loans from fdt to aria dmcc retroactively mischaracterizing them as legitimate fund investments in plaintiffs in plaintiffs describe as fraudulent misreprestation and diversion.
“The shipments of funds to Aria DMCC were blatant diversions and money laundering,” said a complaint statement. “They were made without the knowledge, authorization or approval of the applicant.”
These statements were not tried in court from press time.
Aria DMCC has invested funds in global projects they have described As relatively non -liquid, such as manufacturing factories, mining operations, sea ships, port infrastructure and renewable energy companies.
When Techteryx tried to buy its investments by Aria SPF between mid-20122 and the beginning of 202.3, it received little or no funds, with ARIA entities which allegedly lacking in payments and not responding to requests for buyout, according to legal documents.
Techteryx then took full operational control of Tusd in July 2023, ending the involvement of Truecoin. As part of a transition period according to the sale of December 2020, Truecoin continued to manage the daily operations of Tusd.
According to court documents, Sun intervened at that time to provide emergency liquidity support, which was structured as a loan.
The Techteryx team then quarantined 400 million Tusd so that retail buyouts can continue and that token holders are not affected, despite the empty boxes of the Stablecoin transmitter, the judicial files said.
First Digital says he followed Techteryx’s instructions
In response to a request for comments from Coindesk, the First Digital’s Chok, categorically denied any reprehensible act or participation in fraudulent regimes.
Chok told Coindesk that First Digital Trust had acted strictly as a fiduciary intermediary, performing transactions precisely according to the instructions provided by Techteryx and its representatives. He said that his business was not responsible for assessing or advising these investment decisions.
“We understand that one of the main blockers expressed by ARIA for the first finals of funds (as requested by Techteryx) was their AML / KYC concerns concerning the agreement between Truecoin and Techteryx and the true identity of the ultimate beneficial owner of Techteryx,” said Chok in an electronic letter, adding that he believed that nobody named in the case of daring case.
“We have not yet had the opportunity to fully defend ourselves,” said Chok in an email at Coindesk. “We are fully committed to clarifying these questions in due time when the legal process and arbitration continues.”
Matthew Brittain of Aria Group told Coindesk that he “completely rejects Techteryx’s claims against Aria DMCC and any linked entity”, adding that a number of false allegations have been made in legal proceedings “.
Techteryx was fully aware of the term commitments, said Brittain, and these were described in contracts that subscribers accepted during the investment in Aria CFF, which are clearly stated in the memorandum of the offer.
Brittain also echoed the concerns of Chok concerning the beneficial property of Techteryx, pointing to the cover of the subject of the Wall Street Journal.
The brief Hong Kong identifies Li Jinmei as the ultimate beneficial owner of Techteryx. A techteryx spokesperson confirmed that it was not the same person as Jennifer Yiyang – the previous ultimate owner of the company – despite certain media that fall under the contrary.
“The subscriber did not resolve these questions,” continued Brittain, referring to the problems of beneficial property.
The challenges of the trust bonus collapse and dry settlement compounds
While this happened, Tusd’s challenges continued in the form of a banking partner and a regulatory examination in the United States
In mid-2023, Prime Trust, an independent cryptography guard based in Nevada who is not linked to this case, but that Trueusd used for his Fiat ramps, was put into service by state regulators.
State regulators allegedly alleged that Prime Trust had misused customer funds to cover withdrawal requests, which raises serious concerns about its financial stability.
Nevada judicial files have shown that Prime Trust owed around $ 85 million in Fiat bonds with only around $ 3 million available.
It was not the last headache of the Stablecoin transmitter.
In September 2024, Truecoin and Trusttoken (the owners of the stablecoin before Techteryx) settled with the dry for allegations that they falsely marketed Trueusd as backed by a dollar while secretly investing in reserves in risky offshore funds.
Without admitting reprehensible acts, nor detailing the nature of their offshore investments with Aria, Truecoin and Trusttoken companies agreed to pay civil penalties and disgorging profits up to $ 500,000 to resolve accusations of fraud and not registered securities.
For his part, Brittain d’Aria said that investing in Aria was not the right decision to start for the reserves of a stablecoin.
“Aria SMO never held [its] Strategy as very liquid or appropriate for the reserves of a stablecoin, “he said in an email.
