Dubai court bans $456 million related to Justin Sun's TrueUSD lending

The Dubai Court of Digital Economy has ruled on a $456 million global asset freeze related to Justin Sun, which resulted from a lack of reserves for the TrueUSD token. The court noted that there was strong evidence of a breach of trust related to transfers of funds from Techteryx to Aria Commodities, a Dubai-based trading company. The transfers were the cause of the dispute, as Techteryx claims that these transactions violated the terms of the custody of funds, turning them into long-term loans that were not subject to repayment.

Source Coindesk

Judge Michael Black pointed to "serious issues" in the case and determined that the funds should be frozen to prevent them from being moved or hidden pending the case in the Hong Kong court. He noted that Techteryx had presented convincing evidence that the funds were being held in breach of trust, unlike Aria, which had not provided any evidence of how or to whom the funds were transferred. This decision is the first of its kind in Dubai and is likely to have a significant impact on future cases involving digital assets.