Justice Michael Black ordered a worldwide freeze of $456 million in the bailout of Techteryx, the issuer of the TrueUSD stablecoin, by Justin Sun, after finding substantial evidence of breach of trust in the transfer of the disputed money. The freeze order is intended to ensure that the assets are not moved or hidden to avoid the resolution of ownership by the Hong Kong courts.
Justice Black clarified that his decision was only going to remain valid until the Hong Kong proceedings are settled. He said that the court should determine whether a substantial matter is to be tried and whether there is a good case to argue in the Hong Kong case. The order indicates the power of the Dubai court to issue freezing measures in anticipation of future foreign judgments as part of its inherent powers.
On December 19, 2023, Techteryx filed a case in Hong Kong against Finaport Pte Ltd, Aria Fund and Aria DMCC, as well as First Digital Trust Limited (FDT). It is claimed in the case that Aria Fund and Aria DMCC were constructive trustees of the $456 million, which had been transferred in six separate transactions by FDT and Legacy Trust, both of which were purportedly controlled by Vincent Chok.
According to the filings made by Techteryx, several organizations, such as Finaport, FDT, Crossbridge, and Legacy, were engaged in a planned conspiracy of fraud. The company raised a question as to why the funds were transferred to Aria DMCC rather than Aria Fund. Techteryx claimed that the deals were under a scheme that was intended to misappropriate reserves attributed to the TrueUSD issuer.
Matthew Brittain, the managing director of Aria DMCC and the CEO of Aria Fund, said that FDT had approved the transfers as loans and investments in DMCC. But Justice black found discrepancies in the reports and had mentioned that DMCC did not give details regarding how the funds were used or what assets had been purchased. Techteryx denied having ported its assets, claiming that such an explanation was a hoax created by Britain to cover its abnormalities.
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Justice Black reiterated that the Supreme Court has the authority to grant a freezing order associated with anticipated foreign court verdicts. According to him, these judgments could later be registered under the Foreign Judgments Act. The order protects the Dubai enforcement procedure, so that money could be tracked even in the ongoing litigation in Hong Kong.
The court further recognized that these injunctions are rare, particularly when issued in aid of overseas proceedings involving parties outside the local jurisdiction. However, the decision affirms the jurisdiction of the Dubai court to help foreign courts enforce their protection over assets associated with complicated international financial cases.