Justin Sun bailed out $500M stablecoin TUSD, report
Justin Sun bailed out $500M stablecoin TUSD, report Court filings in Hong Kong and reporting from CoinDesk have revealed that Techteryx, the firm behind TrueUSD, required a loan from Justin Sun after its reserves became stuck in First Digital Trust and it became effectively insolvent, unable to redeem its tokens. This runs contrary to certain public claims by TrueUSD that during the period in question, it continued to claim that it was backed “1:1” by US dollars — even after it started having redemption issues with First Digital. These claims relate to TrueUSD’s relationship with First Digital Trust, which was its primary asset manager. TrueUSD trusted First Digital to manage its reserve, and First Digital Trust invested in trade finance on its behalf. TrueUSD has since alleged that it was unable to redeem those funds and that First Digital directed some assets to another firm, “Glass Door,” apparently without permission f...