Justin Sun Alleges $500M TUSD Fraud, Names FDT/ARIA

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com 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 InvolvedIn 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 TrustYai Sukonthabhund: Former CEO of Crossbridge, now a partner at FinoportMatthew William Brittain: Investment Manager at ARIA Commodity Finance Fund (ACFF) and DMCCCecilia Teresa Brittain: Sole shareholder of Aria Commodities DMCCAccording 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 RegulationDubai Banks Implicated; Sun Calls for UAE ActionThe 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 BailoutNotably, 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 AttacksCourt 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.Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.Source link