In a major development shaking the stablecoin sector, TRON founder Justin Sun has gone public with allegations of a massive financial fraud tied to TrueUSD (TUSD) reserves. Justin Sun exposes TUSD fraud involving over $500 million. The allegations implicate executives from several financial firms and institutions operating out of Dubai.
Sun filed the complaint via Web3Bounty.io, a blockchain-based whistleblower platform. He credits the service for its role in uncovering the alleged misconduct. This led to a liquidity crisis that later required his intervention to stabilize the token. He provided emergency financial support.
In his disclosure, Justin Sun exposes TUSD fraud by naming five individuals at the center of the scheme. These include Christian Alexander Boehnke De Lorraine Elbouef, then Head of Finance at TrueCoin. Vincent Chok, CEO of First Digital Trust (FDT) and Legacy Trust, is also involved. Also named are Yai Sukonthabhund of Finoport, Matthew William Brittain of ARIA Commodity Finance Fund (ACFF), and Cecilia Teresa Brittain of Aria Commodities DMCC.
The allegations detail how $565 million in TUSD reserves were funneled through FDT and Legacy Trust. The funds ended up in accounts linked to Aria Commodities and affiliates. Rather than safeguarding the funds for stablecoin redemptions, the money was reportedly redirected into unauthorized industrial and renewable energy investments.
Sun claims that the scheme involved coordination with other financial entities, including Crossbridge Capital and Finoport. These entities served as investment managers. The misuse of reserves left TUSD vulnerable. This prompted Sun to assist Techteryx, the current TUSD issuer, to ensure liquidity and user confidence.
As Justin Sun exposes TUSD fraud, regulatory observers and market participants are closely monitoring potential legal repercussions.
