TRON founder Justin Sun has exposed an alleged $500 million fraud tied to TrueUSD (TUSD) reserves, implicating several high-profile executives and financial institutions in Dubai. The claims were made public through the Web3Bounty.io platform, which Sun credited for aiding the investigation.
He named five individuals allegedly diverting TUSD reserves between 2020 and 2022. These include Christian Alexander Boehnke De Lorraine Elbouef, Head of Finance at TrueCoin, and Vincent Chok, CEO of First Digital Trust (FDT) and Legacy Trust. Others listed are Yai Sukonthabhund of Finoport, Matthew William Brittain of ARIA Commodity Finance Fund (ACFF), and Cecilia Teresa Brittain of Aria Commodities DMCC.
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Sun reported in the complaint that $565 million in TUSD backing funds passed through FDT and Legacy Trust into accounts maintained by Aria Commodities and its affiliated companies. The money was supposed to support TUSD redemptions, but instead, FDT and Legacy Trust invested it without authorization into industrial projects and renewable energy deals.
The company operated through multiple financial institutions, beginning with Crossbridge Capital and Finoport, which functioned as investment managers. The mismanagement of these reserves caused an extensive liquidity crisis that forced Sun to extend immediate financial aid to the current TUSD issuer, Techteryx.
Dubai-Based Banks Caught in the Spotlight
Sun pointed to four Dubai-based banks where the diverted funds were reportedly deposited—Mashreq Bank, ADIB, Emirates NBD, and EFG. He urged the UAE authorities and banking regulators to conduct internal reviews, freeze suspicious accounts, and take action against any involvement in the illicit flow of funds.
He underlined that financial institutions must reject any role as hiding places for stolen crypto reserves. According to Sun, the success of stablecoin ecosystem recovery depends on banks taking positive action to rebuild trust.
The funds initially dedicated to maintaining the TUSD 1:1 backing scheme became inaccessible because they were invested into unsuitable and non-exchangeable assets. A major crisis occurred because redemption orders went unfulfilled after discovering issues in managing reserves. Investigations were launched into the reserve management procedures.
Techteryx purchased this asset in 2020 and selected FDT to handle TUSD reserves. FDT illegally transferred funds from the stablecoin reserves under its management without proper internal oversight, resulting in unstable operations. Although ongoing legal procedures continue against them, FDT and Aria Commodities maintain their innocence, while newly discovered evidence shows support for Sun’s claims.
Conclusion
As Sun calls for accountability, the spotlight now turns to Dubai’s banking sector and regulatory agencies. The outcome of this case could have a lasting impact on how stablecoins are managed and monitored across the crypto industry.
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