Justin Sun Shares Major Update on $500M TUSD Reserve Misappropriation: Calls Out ARIA-FDT Scam and Dubai Banks

Justin Sun shared more details on how over $500M in TUSD reserves were misappropriated via FDT and ARIA-linked entities. The funds passed through Dubai banks, prompting calls for regulatory intervention. Named individuals include TrueCoin, FDT, Finoport, and ARIA Commodities executives. TRON founder Justin Sun has issued an update on what he describes as a “$500 million fraud” involving misappropriated TrueUSD (TUSD) reserves. The alleged scheme centers around a web of individuals and entities linked to First Digital Trust (FDT), Legacy Trust, and ARIA Commodities, with funds reportedly flowing into financial institutions in Dubai. Sun Names Individuals, Entities Allegedly Involved In his statement, Sun credited the newly launched Web3Bounty.io platform for advancing transparency in tracking large-scale fraud across the crypto ecosystem. He named five individuals allegedly involved: 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 Cecilia Teresa Brittain: Sole shareholder of Aria Commodities DMCC According to flow-of-funds data, over $565 million in TUSD fiat reserves was allegedly misappropriated between 2020 and 2022. Funds were routed via FDT and Legacy Trust into accounts controlled by ARIA Commodities DMCC and ACFF, with Finoport and Crossbridge Capital as investment managers. Related: Justin Sun’s $500M Bailout of TUSD Exposes Weaknesses in Hong Kong Trust Regulation Dubai Banks Implicated; Sun Calls for UAE Action 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 act swiftly “Banks must conduct internal reviews, freeze suspicious inflows immediately, and report them proactively,” said Sun. “Do not become enablers of criminal activity.” He added that he remains confident the UAE will take firm action and stand against financial crime in the Web3 era. Background: TUSD Reserve Issues and Sun’s Earlier Bailout Notably, this update comes after revelations in April that Sun had quietly 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. They failed to meet redemption demands when liquidity was needed. Related: ‘Smear Campaign’: First Digital Responds Forcefully to Justin Sun’s Attacks 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.