In October 2025, the Celsius estate filed a lawsuit against Archblock, TrueCoin, and TrustToken, which all operated TrueUSD (TUSD) as well as other “True” stablecoins before Justin Sun-connected Techteryx took over.
The complaint alleges that the firms that operate the various stablecoins “gambled their customers’ deposits on risky offshore investments with partners who disclaimed any fiduciary duties.”
In its November response, Archblock denied the allegations.
Read more: Justin Sun bailed out $500M stablecoin TUSD, report
However, Techteryx, the Sun-affiliated firm that now operates TrueUSD, has filed lawsuits against First Digital, which allege that First Digital had misappropriated the funds that had been placed with it and invested them in speculative assets.
This accusation was echoed in the SEC lawsuit against TrueUSD that claimed that TUSD’s dollar backing had been sent to “a speculative and risky offshore commodity fund.”
The SEC complaint also claims that two of the firms mentioned in this complaint, TrueCoin and TrustToken, “became aware of redemption problems at the commodity fund” in 2022.
Read more: Control of TrueUSD private keys transferred to Techteryx
Sun has reportedly stepped in with additional liquidity to prevent the stablecoin’s failure.
However, despite this Sun-provided liquidity — which may be limited to only TrueUSD — Celsius still claims that it “has been unable to redeem stablecoins issued by defendants worth approximately USD $12.92 million.”
According to the complaint in March 2023, “Celsius emailed a redemption request to TrustToken, seeking to redeem certain holdings.”
Read more: FTX knew Justin Sun tried to acquire TrueUSD
There was then, apparently, “nearly a month” wait until “Archblock responded.”
Subsequently, in July 2023, “Archblock informed Celsius that GBP, CAD and AUD funds were inaccessible for redemption because Prime Trust…had been placed into receivership in Nevada.”
Prime Trust was not the only TrueCurrency partner who was experiencing problems, as “On March 26, 2024, Alex de Lorraine, the CEO of Archblock, sent an email altering Celsius to ‘potential issue concerning the collateral backing the TGBP stablecoin.’”
De Lorraine added that Archblock “suspects a potential default by an underlying investment fund.”
Read more: What’s up with TrueUSD and the rest of TrustToken’s stablecoins?
Celsius claims this is evidence that “collateral for TGBP held by Celsius were invested with an investment fund and not in cash, cash equivalents or short-term government securities.”
Archblock, in its response, claims to deny that allegation, though it’s unclear how Celsius would be misrepresenting its ability to redeem those tokens.
The TrueCoin website currently includes several paragraphs detailing its legal maneuvers with the Prime Trust bankruptcy related to “foreign currency held by Prime” which TrueCoin claims “were held for the benefit of TrueCoin token holders.”
Protos reached out to Archblock and TrueCoin for comment on this ongoing lawsuit, but neither responded before publication.
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Source: https://protos.com/celsius-estate-alleges-trueusd-firms-gambled-customer-deposits/
