Dubai court orders TrueUSD defendant to reveal legal funding source by Sept. 7

A Dubai court has ordered Matthew William Brittain to disclose the source of funds used for legal and advisory fees by Sept. 7 in a case involving $456 million linked to reserves backing the stablecoin TrueUSD (TUSD). A stablecoin is a type of cryptocurrency designed to maintain a stable value, often pegged to a traditional currency like the US dollar.

The case is part of ongoing proceedings in the Dubai International Financial Centre Courts, where Techteryx has obtained a freeze on $456 million transferred from Legacy Trust and First Digital Trust. These funds are identified as part of the reserves supporting TrueUSD.

Deadline and requirements

Brittain must file a sworn affidavit by 4 p.m. Gulf Standard Time on Sept. 7. The document must detail payments made to law firms Quinn Emanuel, Horizons, Gall, Campbells, and FTI Consulting, including amounts, dates, bank accounts, and the original sources of the funds. He must also explain how the accounts were funded and provide supporting documents.

The order also requires an explanation of a $1,083,912.49 payment made by Aria Bio Industries FZE on Oct. 31, 2025, toward Aria Commodities’ legal costs, with the same funding details required for any further legal expenses incurred since May 13.

Next steps and potential sanctions

If Brittain fails to comply, Techteryx may apply for court sanctions, though any penalty would require a separate application and court consideration. The committal hearing, initially adjourned multiple times, is now scheduled for Oct. 26 and is expected to last four days. It will address a pending committal application related to the case.

The Dubai proceedings are separate from an underlying Hong Kong case where Techteryx alleges the transfers were part of a fraud and that Aria Commodities holds the funds or their proceeds on constructive trust. These allegations remain disputed, and key questions, including ownership of the reserves, are unresolved.

What is confirmed

• A Dubai court ordered Matthew Brittain to disclose legal funding sources by Sept. 7.
• The case involves $456 million linked to TrueUSD reserves.
• A committal hearing is set for Oct. 26.
• Sanctions would require a further application by Techteryx.

Why this matters

The case highlights ongoing legal scrutiny over the handling of reserves for TrueUSD, a major stablecoin. The court’s order seeks transparency in the funding of legal defenses, which could impact the broader dispute over the $456 million in reserves.

Sources

• CryptoSlate