A Dubai court has ordered a worldwide freeze on more than $456 million (Dh1.67 billion) in assets linked to an alleged diversion of funds intended to support a major cryptocurrency stablecoin. The ruling, regarded as the first of its kind involving digital asset reserves in the UAE, was issued by the DIFC’s Digital Economy Court and disclosed in October.
The court granted an indefinite global freezing order against Aria Commodities DMCC, a Dubai-registered firm, along with any banks or institutions holding the contested funds or assets purchased using them. The directive, signed on October 17 by Justice Michael Black, bars the movement or concealment of the $456 million anywhere in the world. Any individual or entity that breaches the order faces potential fines or imprisonment under DIFC rules.
The case concerns TrueUSD (TUSD), a US dollar–pegged stablecoin that relies on equivalent cash reserves to maintain its fixed value. Court documents show that between 2021 and 2022, close to half a billion dollars was allegedly withdrawn from these reserves and redirected into private ventures, including commodity trades and mining operations. The transfers were reportedly executed using forged instructions and fabricated paperwork.
Techteryx Ltd, the owner of TrueUSD and controlled by Chinese crypto entrepreneur Justin Sun, said the shortfall came to light during recent audits. Sun, who founded the TRON blockchain platform in 2017, has long been a prominent figure in the crypto industry and has previously faced regulatory attention in the United States. The company said it injected hundreds of millions of dollars in new capital to ensure that every TUSD token remains redeemable at one US dollar, stressing that users have not suffered losses.
Techteryx has launched legal action across several jurisdictions, including Hong Kong and the Cayman Islands, as part of its effort to recover the missing reserves. In Dubai, the company asked the court to impose a freeze to prevent the funds from being dispersed.
Justice Black approved the request, ruling that the disputed money and any related assets must remain untouched until further notice. The order extends globally, meaning any party involved in moving the assets could be held in contempt of court in Dubai.
Justin Sun publicly welcomed the decision last month, calling it a “fair and resolute ruling” and describing the freeze as an important step toward restitution. Speaking at a media briefing in Hong Kong on November 27, he said investigators are tracking transactions across multiple countries and claimed that a network of custodians played a role in shifting the funds through cross-border transfers and illicit kickbacks.
The Digital Economy Court, established to handle disputes involving cryptocurrencies, blockchain and emerging technologies, views the case as a critical test of Dubai’s capacity to address complex digital asset challenges. Legal experts say the ruling signals that the emirate is prepared to enforce strong protections in the fast-growing crypto sector.
The full judgment has been published on the DIFC Courts’ official site.
