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A Dubai court has frozen $456 million allegedly linked to Justin Sun and entities connected to the TrueUSD stablecoin, after finding “compelling evidence of breach of trust” in a case where the funds were allegedly misdirected through a web of offshore companies.
Justice Michael Black of Dubai’s Digital Economy Court issued the freeze order to prevent the funds from being moved or hidden while Hong Kong courts determine rightful ownership.
The case stems from allegations that Techteryx, an early backer of TUSD, had $456 million in reserves routed to wrong entities through intermediaries controlled by trustees Vincent Chok and others.
The ongoing Techteryx bailout saga stems from Hong Kong legal proceedings filed on December 19, 2023. Techteryx launched the case against First Digital Trust (FDT), Finaport Pte Ltd, Aria Fund, and Aria DMCC, alleging the entities acted as constructive trustees for the misdirected $456 million.
According to court filings, the remittances—handled through FDT and Legacy Trust, both controlled by Vincent Chok—were funneled through multiple entities, allegedly forming part of a “fraudulent conspiracy.” Techteryx argues that the funds’ routing to Aria DMCC rather than the intended Aria Fund raises serious red flags.
The Techteryx bailout controversy gained momentum when Matthew Brittain, managing director of Aria DMCC and CEO of Aria Fund, claimed that FDT had authorized the transfers under Chok’s direction.
Chok, however, denied any wrongdoing. Brittain further asserted that the payments were structured as “loans” and legitimate investments—claims Justice Black questioned due to inconsistencies in documentation.
“DMCC has failed to provide evidence showing where the funds went or what assets were acquired,” Justice Black noted. “The lapse of time does not excuse this lack of accountability.”
His statement reinforces the growing skepticism surrounding the Techteryx bailout and its murky paper trail.
In justifying his ruling, Justice Black emphasized the court’s inherent authority to issue freezing orders related to anticipated foreign judgments. He explained that when a foreign judgment becomes registrable under the Foreign Judgments Act, Dubai’s Supreme Court may enforce it to protect creditors.
“The purpose of this freeze is to ensure any forthcoming foreign judgment remains enforceable,” Black added.
Legal analysts say this approach strengthens Dubai’s position as a jurisdiction willing to uphold international financial integrity, especially in high-stakes cases like the Techteryx bailout.
Techteryx countered defense claims that the fund transfers were “ported” through legitimate investment exercises. In its submission, the company dismissed the so-called “Porting” narrative as a fiction fabricated to conceal irregularities.
According to Techteryx, the alleged movement of DMCC’s interests—particularly in Tanzanian mining assets—was an attempt to obscure the Fund’s ownership and evade enforcement actions. “The wrongdoers should not be allowed to escape punishment,” a Techteryx representative told reporters following the ruling.
Industry observers believe the Techteryx bailout ruling could set a precedent for how offshore fund mismanagement is treated in cross-border crypto disputes. Dr. Simon Caldwell, a blockchain law expert at King’s College London, commented:
“The Techteryx bailout case signals that global courts are now prepared to intervene decisively when digital asset transactions appear to mask fraud.”
Meanwhile, crypto analyst Eleanor Cheng of TokenView Insights noted,
“This case highlights how stablecoin issuers, even those backed by big names like Justin Sun, are not immune from judicial scrutiny.”
As the Techteryx bailout proceedings continue in both Dubai and Hong Kong, investors are closely watching for potential ripple effects on the TrueUSD ecosystem and Justin Sun’s broader crypto ventures. The indefinite freeze marks a significant blow to confidence in offshore stablecoin structures.
For now, Justice Black’s ruling stands as a bold message to the global crypto community: financial opacity will no longer be tolerated, even in the decentralized economy.
