Bitcoin 
Ethereum 
Tether 
XRP 
BNB 
USDC 
Solana 
Dogecoin 
TRON 
Cardano 
Justin Sun rescued TUSD in a bold move that exposed the fragile underpinnings of some stablecoins.
TUSD, or TrueUSD, faced a crisis when over $450 million in reserves became inaccessible. This situation triggered panic, leading to depegging and major outflows from the Curve liquidity pool.
The stablecoin’s troubles started when its custodian, Prime Trust, faced legal and financial challenges. Techteryx, the current owner of TUSD, had shifted custodianship to First Digital Trust. But trouble followed. Court documents revealed that reserves were frozen amid a dispute between Techteryx and its financial services provider, Aria Commodities DMCC. The locked funds represented nearly 90% of TUSD’s supply.
As fears grew, redemptions surged, causing TUSD’s peg to fall significantly below $1. Curve’s TUSD/FRAXBP pool saw over 90% of its liquidity drained in days. Traders and investors alike started abandoning the asset. Trust in the stablecoin wavered, and market watchers raised red flags across social media.
Justin Sun steps in to stabilize TUSD’s value
To stop the collapse, Justin Sun rescued TUSD using funds from crypto exchange HTX (formerly Huobi) and various DeFi platforms. On-chain data shows Sun’s wallets deploying liquidity across Curve and Aave to absorb the mass sell-offs. He funneled millions of dollars into stabilizing the price and preventing deeper damage.
Sun didn’t officially confirm his involvement, but wallet activity tied to him made his rescue efforts obvious. His move likely helped TUSD regain partial stability. While the peg has not fully recovered, the stablecoin stopped bleeding — thanks largely to Sun’s intervention.
His unofficial bailout sparked debate. Some viewed it as a responsible move from a major figure in crypto. Others saw it as another case of centralization — one man propping up a supposedly decentralized asset.
Justin Sun rescues TUSD — but trust issues remain
This episode reignited concerns over opaque custodianship and stablecoin solvency. First Digital Trust remained silent during the crisis. Techteryx issued vague statements, failing to fully explain what went wrong. Meanwhile, Aria Commodities denied fault, claiming legal entitlements over the frozen funds.
The story also highlights the risks of off-chain assets backing on-chain tokens. TUSD marketed itself as fully backed and transparent. But when real-world legal systems intervene, DeFi can’t always react quickly or clearly. The market’s swift reaction proved that confidence, not code, holds up many stablecoins.
With Justin Sun rescuing TUSD trending in crypto circles, the event leaves questions: Should stablecoins be more decentralized? Should more reserves sit on-chain? And can one person be trusted to bail out entire ecosystems?
ANOTHER MUST-READ ON ICN.LIVE:
