Tron founder offers emergency loan to support TUSD to end liquidity crisis
Court documents in Hong Kong revealed that "Justin Sun," founder of Tron, secretly intervened to support the stability of the stablecoin TrueUSD (TUSD) after a liquidity crisis faced by "Techteryx," the company that has owned the currency since 2020.
Hong Kong-based First Digital Trust (FDT) managed the reserve but transferred $456 million to "Aria Commodities DMCC" in Dubai, leading to issues with fund recovery.
This transfer caused severe financial difficulties, as "Techteryx" struggled to recover its investments between mid-2022 and early 2023.
As the crisis worsened, the company turned to "Justin Sun," who provided emergency funding in the form of a $400 million loan, which helped stabilize the currency and ensure withdrawal operations for users.
"Techteryx" then filed a lawsuit, accusing FDT and entities linked to Aria of financial mismanagement and fraud, citing unauthorized payments.
In response, FDT defended its actions, while "Matthew Breiten," the actual owner of the "Aria CFF" fund, denied the allegations, asserting that the transactions complied with the agreed-upon terms.
This came amid turmoil in TUSD's price, as it lost its peg to the dollar last January due to heavy selling, coinciding with reports of Binance excluding the currency from its list of eligible assets for certain hedging programs.
$TROY