The Dubai Digital Economy Court has authorized its first-ever global asset freeze in a case concerning the missing reserves backing the stablecoin TrueUSD. The $456 million shortfall previously forced Justin Sun to cover obligations to token holders.
Core of the Reserve Misuse Allegations
At the center of the dispute is whether funds from TrueUSD’s reserves were improperly transferred to Aria Commodities DMCC. This Dubai-based trade finance firm allegedly invested the money in high-risk and illiquid ventures across emerging markets, including commodity trading and mining projects, according to the plaintiff’s legal counsel.
Aria, part of a group of companies controlled by financier Matthew William Brittain, reportedly received these funds in 2021 and 2022 through accounts managed by Hong Kong trustee First Digital Trust.
TrueUSD operator Techteryx claims that the transfers breached custody terms. Liquid reserves were converted into long-term loans and private deals that were unable to be redeemed when token holders requested withdrawals.
Matthew Brittain previously stressed that ARIA CFF never presented its investment strategy as highly liquid or suitable for stablecoin reserve management, stating that liquidity issues stemmed from term commitments.
Court Ruling Sets Precedent
In a ruling dated October 17, 2025, Judge Michael Black KC ordered the freezing of funds to prevent their transfer or concealment until Hong Kong courts determine the rightful ownership.
“Techteryx has presented serious arguments for judicial consideration,” Judge Black stated.
The judge found that Techteryx demonstrated a credible claim to the assets under the trust structure. Meanwhile, Aria failed to provide evidence of how the funds were transferred or who owns the assets purchased with them.
Judge Black also cited the risk that Brittain, who controls Aria, could dissipate or restructure the assets to obstruct enforcement of a future judgment.
The order marks the first global asset freeze ever issued by the Dubai Digital Economy Court, setting a significant legal precedent.
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