Dubai Court Freezes $456M Linked to Justin Sun’s TrueUSD Bailout Amid Fraud Allegations

Dubai's Digital Economy Court has imposed a worldwide freeze on $456 million tied to Justin Sun's bailout of Techteryx, issuer of the TrueUSD stablecoin. Justice Michael Black cited compelling evidence of breach of trust, ordering the freeze to preserve assets pending Hong Kong proceedings that allege fraudulent misappropriation of invested reserves.

The funds in question were remitted through entities controlled by Vincent Chok, including First Digital Trust and Legacy Trust. Techteryx alleges a fraudulent conspiracy involving Finaport, Crossbridge, and other intermediaries, with unanswered questions about why payments were routed to Aria DMCC instead of the designated fund.

This legal action compounds regulatory scrutiny facing stablecoin issuers, potentially impacting market confidence in dollar-pegged assets. The freeze remains effective until Hong Kong courts reach a final determination, creating uncertainty around Techteryx's operations and TrueUSD's reserve backing.