Justin Sun rescues TrueUSD, but the stablecoin’s reserves are trapped in illiquid investments made without his permission

Odaily Planet Daily News After acquiring TrueUSD from TrueCoin in December 2020, Techteryx appointed Hong Kong-based trustee First Digital Trust (FDT) to manage its stablecoin reserves. According to Hong Kong court documents, after Techteryx's nearly $500 million reserves became illiquid, Justin Sun rescued the company's TrueUSD stablecoin and provided emergency liquidity support in the form of a loan. According to documents prepared by the US law firm Cahill Gordon & Reindel, FDT was instructed to invest the reserves in the Cayman Islands-registered Aria Commodity Finance Fund (Aria CFF). However, court documents allege that approximately $456 million was improperly transferred to Aria Commodities DMCC, an independent, unauthorized entity based in Dubai. At the end of last year, a review of TrueUSD's proof showed that approximately 99.7% of the stablecoin's reserves were still held by First Digital Trust, despite allegations made in a previous settlement agreement by the US SEC. It’s worth noting that the settlement does not include Techteryx, the company that now owns TrueUSD, which has repeatedly denied that it is controlled by Justin Sun, despite claims by the former CEO of TrustLabs that Sun had attempted to acquire the company. (CoinDesk)