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Dubai Court Freezes $456M in TrueUSD Fraud Case Linked to Justin Sun’s Techteryx Bailout

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A choose on the Dubai International Financial Centre (DIFC) has imposed a worldwide freeze on $456 million in assets tied to the alleged misappropriation of TrueUSD (TUSD) stablecoin reserves, a case linked to Tron founder Justin Sun’s earlier bailout of the token.

Key Takeaways:

  • A Dubai courtroom has ordered a worldwide freeze on $456 million in belongings linked to the alleged diversion of TrueUSD reserves.
  • The injunction targets Dubai-based Aria Commodities DMCC, which allegedly acquired the funds as a substitute of the designated reserve account.
  • Tron founder Justin Sun beforehand coated the $456 million shortfall to shield TUSD holders.

H.E. Justice Michael Black KC of the DIFC Digital Economy Court ordered the continuation of each proprietary and worldwide injunctions in opposition to Dubai-based Aria Commodities DMCC, barring the agency from transferring or coping with any belongings up to the worth of $456 million.

Dubai Judge Extends Global Freeze on $456M Linked to TrueUSD Case

The order was issued in an amended judgment on October 17.

“I direct that the next injunctions shall stay continued till additional order of the Court: a worldwide freezing injunction, prohibiting the First Defendant [Aria DMCC] from eradicating from Dubai any of its belongings that are in Dubai up to the worth of USD 456,000,000,” Justice Black declared in the ruling.

The resolution follows a long-running dispute between Techteryx Ltd, the operator of the TrueUSD stablecoin, and a number of other monetary establishments, together with Aria Commodities DMCC, Mashreq Bank PSC, Emirates NBD Bank PJSC, and Abu Dhabi Islamic Bank PJSC.

According to the case filings, Techteryx, which acquired TrueUSD in 2020, was unable to redeem a big portion of its US greenback reserves managed by First Digital Trust between 2022 and 2023.

Investigations revealed that the funds, as a substitute of being held in the right Cayman Islands-based reserve account, had been allegedly redirected by First Digital Trust to Aria Commodities DMCC in Dubai.

Counsel for Techteryx, Al Tamimi & Co, acknowledged that the reserves had been initially custodied in Hong Kong, and between May 2021 and March 2022, round $468 million was stated to have been invested in the Aria Commodity Finance Fund, although almost $456 million was transferred instantly to Aria Commodities DMCC.

The diverted funds gave rise to claims of breach of belief and realizing receipt, prompting the proprietary injunction and the following world asset freeze.

Justin Sun, listed in the filings as an final useful proprietor of Techteryx, beforehand announced a full bailout of all public TUSD holders, overlaying the $456 million shortfall allegedly brought on by the diversion.

Justin Sun Vows Global Pursuit of $456M in Missing TrueUSD Funds

In a post on X, Sun praised the DIFC Court’s resolution, noting that Techteryx continues to observe and get better the lacking funds.

“This serves as a powerful discover to all individuals knowingly concerned in world rip-off operations of ARIA. You can run however you can not cover; we are going to come after you wherever you might be,” Sun wrote.

The DIFC Court’s injunctions will stay in impact till additional orders are issued, as Techteryx pursues the restitution of the lacking TUSD reserves.

The submit Dubai Court Freezes $456M in TrueUSD Fraud Case Linked to Justin Sun’s Techteryx Bailout appeared first on Cryptonews.

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