TrueUSD bailout triggers Dubai court’s first worldwide asset freeze

Dubai’s Digital Economy Court has upheld a worldwide asset freeze tied to the trueusd bailout after finding compelling evidence of a breach of trust.

Why did the court act on the trueusd bailout?

The dispute stems from a $456 million stablecoin reserve shortfall at TrueUSD that prompted the Justin Sun bailout of token holders. The Dubai’s Digital Economy Court cited “compelling evidence of a breach of trust” and continued a worldwide freeze.

How were reserves routed to Aria Commodities DMCC?

According to the claimant’s counsel, funds backing the token were funneled to Aria Commodities DMCC, a Dubai trade0finance firm that financed commodity shipments, mining projects and other illiquid ventures. Moreover, transfers occurred in 2021 and 2022 through accounts run by Hong Kong trustee First Digital Trust.

Aria is part of a group controlled by financier Matthew William Brittain. That said, Brittain previously told CoinDesk that liquidity issues were “a matter of term commitments.” “ARIA CFF has never held [its] strategy out as highly liquid, or appropriate for the reserves of a stablecoin,” he said.

What did Justice Black decide, and what comes next?

In a ruling dated Oct. 17, 2025, Justice Michael Black KC found “serious issues to be tried” and ordered the funds frozen to prevent concealment before Hong Kong courts determine ownership. Moreover, he said Techteryx had a credible constructive0trust claim, while Aria provided “no evidence” of transfers or who owned assets purchased.

He also warned of a “real risk” that Brittain could dissipate or restructure assets “to frustrate the enforcement of any judgment.” The decision marks the first worldwide freezing order issued by the Digital Economy Court. F

or context on this milestone, see Al Tamimi’s summary in Digital Economy Court’s first Worldwide Freezing Order.

Taken together, the decision strengthens the Dubai freezing order and frames the next steps in the techteryx legal dispute. However, with a worldwide asset freeze in place, ownership will be settled in Hong Kong while the trueusd bailout remains a touchstone for stablecoin governance.