TRON Founder Justin Sun Accuses Five Individuals of $565 Million Fraud in TUSD Case

Justin Sun, the founder of TRON, has provided an update on a significant fraud case involving the misappropriation of over $500 million in TrueUSD (TUSD) reserves. The alleged scheme involves a network of individuals and entities linked to First Digital Trust (FDT), Legacy Trust, and ARIA Commodities, with funds reportedly flowing through financial institutions in Dubai.

Sun's statement highlighted the role of the newly launched Web3Bounty.io platform in advancing transparency within the crypto ecosystem. He named five individuals allegedly involved in the fraud: Christian Alexander Boehnke De Lorraine Elbouef, Head of Finance & Operations at TrueCoin, the former operator of TrueUSD (TUSD); Vincent Chok, CEO of First Digital Trust (FDT) and Legacy Trust; Yai Sukonthabhund, Former CEO of Crossbridge, now a partner at Finoport; Matthew William Brittain, Investment Manager at ARIA Commodity Finance Fund (ACFF) and DMCC; and Cecilia Teresa Brittain, Sole shareholder of Aria Commodities DMCC.

According to the flow-of-funds data, over $565 million in TUSD fiat reserves was allegedly misappropriated between 2020 and 2022. The funds were routed through FDT and Legacy Trust into accounts controlled by ARIA Commodities DMCC and ACFF, with Finoport and Crossbridge Capital acting as investment managers.

The funds were funneled into at least four Dubai-based banks: Mashreq Bank, ADIB, Emirates NBD, and EFG. Sun called on the UAE government, regulators, and the banks involved to take swift action. "Banks must conduct internal reviews, freeze suspicious inflows immediately, and report them proactively," said Sun. "Do not become enablers of criminal activity." He expressed confidence that the UAE would take firm action against financial crime in the Web3 era.

This update follows earlier revelations in April that Sun had provided emergency liquidity to Techteryx, the current issuer of TUSD, after nearly $456 million in reserves were locked in illiquid investments. Techteryx had acquired TUSD in 2020 and appointed FDT to manage its reserves. However, FDT allegedly diverted funds to Aria Commodities DMCC, which used them for unauthorized investments in assets like manufacturing plants and renewable energy projects. These investments failed to meet redemption demands when liquidity was needed.

Court documents now outline claims of fraudulent misrepresentation and misappropriation of funds, though both FDT and Aria deny wrongdoing. TUSD has also faced additional challenges, including the collapse of Prime Trust and a U.S. SEC settlement tied to misleading marketing about its reserve backing.

Sun's update underscores the complexities and risks associated with managing stablecoin reserves, particularly when involving multiple entities and jurisdictions. The involvement of Dubai-based banks adds an international dimension to the case, highlighting the need for coordinated regulatory efforts to combat financial crime in the crypto space. Sun's call for action from the UAE government and financial institutions reflects a growing awareness of the importance of transparency and accountability in the rapidly evolving world of digital assets.