Dubai Court Upholds Worldwide Freeze Over $456 Million TrueUSD Reserve Dispute

The $456 million reserve shortfall that prompted Justin Sun to bail out holders of the TrueUSD stablecoin is now the subject of a global freezing order upheld by Dubai’s Digital Economy Court. The dispute revolves around whether funds from TrueUSD’s reserves were improperly directed to Aria Commodities DMCC, a Dubai-based trade-finance firm involved in financing commodity shipments, mining projects, and other illiquid ventures across emerging markets, according to counsel for the claimant.

Aria, part of a network of entities controlled by financier Matthew William Brittain, received the money in 2021 and 2022 through accounts managed by Hong Kong trustee First Digital Trust. First Digital Trust did not immediately respond to a request for comment from CoinDesk. Techteryx, the claimant, argues that these transfers violated the custody terms of the stablecoin, converting cash reserves into long-term loans and private deals that could not be redeemed when token holders requested withdrawals.

In prior comments to CoinDesk, Matthew Brittain of Aria Group said that the issues of liquidity were largely a matter of term commitments. “ARIA CFF has never held [its] strategy out as highly liquid, or appropriate for the reserves of a stablecoin,” he told CoinDesk.

In his ruling dated October 17, 2025, Justice Michael Black KC found that Techteryx had established “serious issues to be tried” and that the funds should be frozen to prevent them from being moved or concealed before Hong Kong courts could determine ownership. Black noted that Techteryx had demonstrated a credible claim that the funds were held on constructive trust, while Aria had provided “no evidence” explaining how the money was transferred or who owned the assets purchased with it.

Justice Black also highlighted a “real risk” that Brittain, Aria’s controlling mind, could dissipate or restructure assets “to frustrate the enforcement of any judgment.” The ruling represents the first worldwide freezing order issued by Dubai’s Digital Economy Court and underscores the court’s willingness to intervene in cross-border disputes involving digital-asset reserves.

By fLEXI tEAM