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Category: CRYPTO NEWS
The post Tron Founder Justin Sun Steps In To Stabilize TUSD After $456M Reserve Crisis appeared on BitcoinEthereumNews.com. Justin Sun, the founder of Tron, stepped in to provide crucial financial support to TrueUSD (TUSD) following a $456 million reserve crisis that left the stablecoin’s reserves in a state of limbo. According to court documents filed in Hong Kong, a series of financial missteps and unauthorized investments by TUSD’s fiduciary led to a significant liquidity shortage. Sun’s involvement helped prevent the situation from escalating further, ensuring TUSD’s stability during a challenging period for the stablecoin. TUSD Faces $456 Million Liquidity Crisis Techteryx, which acquired TrueUSD in December 2020, faced a severe liquidity crisis when it discovered that around $456 million of its stablecoin reserves were stuck in illiquid investments. These investments were made by First Digital Trust (FDT), an independent fiduciary based in Hong Kong, which TDT had appointed to manage TUSD funds. Instead of sinking the agreed funds into the Aria Commodity Finance Fund (Aria CFF), FDT is accused of channeling funds to Aria Commodities DMCC which is a company different from Aria CFF but based in Dubai. Aria Commodities DMCC offered trade finance, commodity trading and infrastructure development services wherein it invested in assets which were mainly non-standard. This caused problems when entry was sought by Techteryx to ‘exchange’ the investments, as the money was not ‘redeemed’. Court documents further reveal that even though Techteryx attempted to withdraw the cash several times, Aria DMCC hardly remunerated it. Justin Sun Provides Emergency Financial Support When funding reserves in TUSD became unavailable, the stability of the stablecoin and its link to the US dollar came under threat. To mitigate the effects of the situation regarding liquidation, Tron Founder Justin Sun injected capital into TUSD to prevent further collapse. His financial intervention allowed for the continuation of retail redemptions and averted further disruption of TUSD users. The support was in…
2025-04-03T02:38:06+00:00