Justin Sun addressed the ongoing TrueUSD (TUSD) reserve dispute during a rare in-person media briefing in Hong Kong on November 27. The event, titled “Truth Unveiled, Justice Revealed,” focused on allegations surrounding hundreds of millions of dollars in TUSD reserves.
Sun accused custodial partners responsible for safeguarding the stablecoin’s assets of mismanaging funds and contributing to a liquidity shortfall. The dispute involves Techteryx, First Digital Trust, and Aria Commodities, with legal proceedings taking place across multiple jurisdictions.
The allegations remain contested. The companies and individuals involved have faced claims concerning the handling of TUSD reserves, while the legal process continues to determine the facts and responsibility.
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) November 27, 2025
Alleged diversion of reserve assets
During the briefing, Sun alleged that TUSD reserves were diverted into high-risk ventures between 2021 and 2022. He identified First Digital Trust and Aria Commodities as key parties in the dispute and claimed that funds were placed in commodity financing and mining-related investments.
According to Sun, these positions became difficult to unwind when redemption pressure increased in early 2025. He said the resulting liquidity problems required him to inject almost $500 million to help stabilize the stablecoin and protect users.
Sun also welcomed a global asset freeze ordered by Dubai’s DIFC Court, describing it as a step toward recovering the disputed assets.
The precise status of the funds, the extent of any losses, and the legal responsibility of the parties remain matters for the courts.
Why the dispute matters for stablecoins
The TUSD controversy highlights the risks that can arise when stablecoin reserves are held through third-party custodians and invested in assets that may not be quickly converted into cash.
A stablecoin’s ability to meet redemption requests depends not only on the value of its reserves but also on their accessibility. If reserves are tied up in illiquid investments, a sudden increase in redemptions can create pressure even when the underlying assets retain value.
The case also raises questions about how reserve managers, custodians, and stablecoin issuers communicate information to users. Clear disclosures about asset locations, redemption arrangements, and custody responsibilities can help users assess the risks behind a dollar-pegged token.
ALSO READ: Justin Sun Sues World Liberty Financial Over Frozen Tokens and Lost Governance Rights
Hong Kong oversight faces renewed scrutiny
Sun called for stronger supervision of trust service providers in Hong Kong and greater coordination between regulators in different jurisdictions.
The dispute traces back to the reported discovery of a $456 million shortfall in TUSD reserves earlier in 2025. Techteryx accused custodians of moving funds through unauthorized channels, while First Digital Trust disputed the allegations.
The cross-border nature of the case adds complexity. Assets, custodians, companies, and legal proceedings may fall under different regulatory systems, making recovery and enforcement more difficult.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
