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$456M in TUSD Reserves Redirected to Dubai Company
A staggering $456 million has been redirected from the TUSD stablecoin’s reserves without approval, according to court documents from Hong Kong. The funds were allegedly diverted to Aria Commodities DMCC, a Dubai-based trade finance company.
As it turns out, First Digital Trust was supposed to manage the reserves, but instead chose to channel them to Aria Commodities DMCC, linked to the Brittain family. Matthew Brittain is reportedly behind Aria CFF, while his wife Cecilia Brittain owns Aria Commodities DMCC.
The unexpected move triggered a liquidity crisis for TUSD, making it challenging for the stablecoin to meet redemption requests. Techteryx, which acquired TUSD in December 2020, faced numerous challenges in this regard, citing that the diversion led to failed redemptions and unauthorized transactions.
Techteryx has since taken over full control of TUSD operations from TrueCoin, marking a significant shift in the stablecoin’s management. The sudden turn of events highlights concerns about potential mismanagement and financial irregularities within the TUSD ecosystem.
Justin Sun provided emergency funding in the form of a loan to Techteryx, enabling it to isolate $400 million in TUSD reserves, thereby protecting regular user redemptions. Despite his previous disassociation from the stablecoin, Mr. Sun’s timely intervention is seen as crucial in stabilizing the currency.
In the aftermath, Binance removed TUSD from its staking program for MANTA, a move that likely contributed to further erosion of trust and confidence in the cryptocurrency.
Source: https://coinchapter.com/456m-in-tusd-reserves-redirected-to-dubai-company/?utm_source=rss&utm_medium=rss&utm_campaign=456m-in-tusd-reserves-redirected-to-dubai-company
