Justin Sun Exposes $500M TUSD Fraud Tied to Dubai Banks and Top Execs
By: coinstats blog|2025/05/04 20:15:01
0
Share
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. Also Read: Andre Cronje: Early Life and Net Worth – The Vision Behind Yearn Finance and DeFi Innovation13 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. Also Read: Whale Moves $64M in XRP to Coinbase as ETF Hype Fuels Bullish Momentum The post Justin Sun Exposes $500M TUSD Fraud Tied to Dubai Banks and Top Execs appeared first on 36Crypto .
You may also like

They wrote ZachXBT a solid script, each one more profitable than the last
The insider bets on "self-exposure" upon knowing they will be exposed

Key Market Insights for February 27th, how much did you miss?
1. On-chain Funds: $21.4M inflow to Base this week; $21.4M outflow from Arbitrum
2. Biggest Gainers and Losers: $SAHARA, $SIREN
3. Top News: Jack Dorsey responds to "Block Layoffs Due to Mismanagement," citing structural mistakes leading to over-hiring corrected by 2024, targeting over $2M in EBITDA per employee

Bitcoin's "Identity Crisis": Why It's Becoming Less Like a Safe Haven Asset?
What's the Relationship Between Bitcoin and Tech Stocks? Why Did the Digital Gold Narrative Fail When Bitcoin and Tech Stocks Correlated?

Ethereum ERC-5564: Keep Your Receiving Address Private
The payment address you provide is a full-fledged on-chain financial life, and this situation is about to change.

The Korean youth who stays up all night trading cryptocurrency, diving headfirst into Samsung Hynix
In the Fourth Year of the LUNA Hard Fork, South Korea Found a New Faith

Dialogue Michael Saylor: The cost of holding strategy has no substantial meaning, Bitcoin's utility is high, so its volatility is large
Strategy founder Michael Saylor recently appeared on Bitcoin educator Natalie Brunell's YouTube podcast, discussing topics including why Bitcoin has not reached new highs; whether price suppression really exists; quantum computing; and Strategy's cost basis.

When everyone is selling software stocks, HSBC says you are wrong
The panic in the market is a misjudgment.

Will 99% of tokens go to zero?
The cryptocurrency industry is undergoing a reshuffle, with 99% of tokens likely to go to zero, and only a few projects with underlying business and token consistency will survive.

How did the great detective ZachXBT become adept at solving bizarre cases?
The field of cryptocurrency has never lacked heroes and villains. Most heroes are the founders of protocols or investors who time their trades perfectly. ZachXBT is different. He is a hero because he chooses to protect people rather than profit from them.

The cryptocurrency crash that evaporated 40 billion dollars, some people knew the outcome 10 minutes in advance
The truth is gradually coming to light.

Institutions are embracing cryptocurrency, but practitioners are unusually frustrated. Who will ultimately win?
Perhaps, "institutional adoption" is not a mission, but a form of extraction strategy.

Morning Report | Bitwise acquires Chorus One; Circle announces Q4 2025 and full-year performance; Stripe initiates share buyback at a valuation of $159 billion
Overview of Important Market Events on February 25

Vitalik Chiang Mai Dialogue: The Explosion of Artificial Intelligence, What Should Crypto Fight For?
Vitalik talks to Michel Bauwens: Reflecting on the original intention of Ethereum, advocating for "regenerative accelerationism" to deeply embed crypto technology into global collaboration and a real productive economy.

Stock price rises over 35%! Circle's financial report exceeds expectations: USDC circulation surges by 72%
Does the AI agent payment narrative open up a valuation imagination space?

A transaction of $0.1 can cause Polymarket market makers to lose everything
A blockchain transaction of less than $0.1 can instantly erase market orders worth tens of thousands of dollars from Polymarket's order book. This is not a theoretical deduction, but a reality that is happening.

The AWS of the Financial World: Why It Becomes the Biggest Winner in the Era of AI + Stablecoins
Stripe 2026 Strategic Deep Dive: Not just a payment giant, but also transforming into a global financial operating system for the AI and stablecoin era through the acquisition of Bridge and Privy.

Token goes overseas, selling Chinese electricity to the world
A smoke-free war of electricity.

Morning Report | Kalshi publicly punishes insider trading for the first time; STS Digital completes $30 million financing; American Bitcoin announces 2025 financial report
Overview of Important Market Events on February 26
They wrote ZachXBT a solid script, each one more profitable than the last
The insider bets on "self-exposure" upon knowing they will be exposed
Key Market Insights for February 27th, how much did you miss?
1. On-chain Funds: $21.4M inflow to Base this week; $21.4M outflow from Arbitrum
2. Biggest Gainers and Losers: $SAHARA, $SIREN
3. Top News: Jack Dorsey responds to "Block Layoffs Due to Mismanagement," citing structural mistakes leading to over-hiring corrected by 2024, targeting over $2M in EBITDA per employee
Bitcoin's "Identity Crisis": Why It's Becoming Less Like a Safe Haven Asset?
What's the Relationship Between Bitcoin and Tech Stocks? Why Did the Digital Gold Narrative Fail When Bitcoin and Tech Stocks Correlated?
Ethereum ERC-5564: Keep Your Receiving Address Private
The payment address you provide is a full-fledged on-chain financial life, and this situation is about to change.
The Korean youth who stays up all night trading cryptocurrency, diving headfirst into Samsung Hynix
In the Fourth Year of the LUNA Hard Fork, South Korea Found a New Faith
Dialogue Michael Saylor: The cost of holding strategy has no substantial meaning, Bitcoin's utility is high, so its volatility is large
Strategy founder Michael Saylor recently appeared on Bitcoin educator Natalie Brunell's YouTube podcast, discussing topics including why Bitcoin has not reached new highs; whether price suppression really exists; quantum computing; and Strategy's cost basis.