Archblock files for bankruptcy, blames fraud and Justin Sun-linked deal
Archblock, TrustToken, and TrueCoin, firms originally behind TrueUSD, declared bankruptcy after being defrauded by a "criminal enterprise."
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Archblock, TrustToken, and TrueCoin, firms originally behind TrueUSD, declared bankruptcy after being defrauded by a "criminal enterprise."
Read more (5 min) →— HTX, Justin Sun
Controversial cryptocurrency entrepreneur Justin Sun is a plaintiff and a defendant in a variety of important ongoing lawsuits.
Celsius has filed a lawsuit against Archblock, alleging that it's failed to redeem millions of dollars worth of stablecoins.
2025 has been a great year for stablecoins; we're seeing new regulatory frameworks, and the president of the United States has launched one.
Justin Sun is involved in several lawsuits, often involving firms in which he's deeply involved but denies ownership of.
Filings reveal that Techteryx, the firm behind TrueUSD, required a loan from Justin Sun after its reserves got stuck in First Digital Trust.
HTX has sent $406 million of the $502 million total TrueUSD to new addresses in the last few months, perhaps pending redemptions.
TrueCoin and TrustToken have settled SEC charges of misrepresenting TrueUSD as 1:1 backed after funds were sent to a speculative, risky fund.
FINMA claims that FlowBank "no longer has sufficient capital for its operations as a bank" and says it's worried the bank is "over-indebted."
This dramatic fall in the market cap of TrueUSD follows Binance's delisting of several TrueUSD pairs on March 15.