- Celsius estate sued Archblock, TrueCoin and TrustToken in October 2025 over redemption problems involving TrueUSD and other “True” stablecoins.
- The complaint says the firms “gambled their customers’ deposits on risky offshore investments with partners who disclaimed any fiduciary duties.”
- Archblock formally responded in November and denied the allegations.
- Techteryx (affiliated with Justin Sun) has alleged misappropriation by a partner, and the SEC accused TrueUSD of sending backing to “a speculative and risky offshore commodity fund.”
- Celsius says it still cannot redeem about $12.9 million in stablecoins and points to problems at Prime Trust and an underlying investment fund for some currency backing.
In October 2025, the Celsius estate sued Archblock, TrueCoin and TrustToken over stablecoins including TrueUSD; the estate said the firms mishandled customer deposits and linked the complaint to risky offshore investments (the estate’s filing can be seen here: filed). A stablecoin is a digital token meant to keep a stable value relative to a currency; redemption means exchanging the token back into that currency.
Archblock responded in November and denied the claims. The complaint also notes that Techteryx — which now operates TrueUSD and is tied to Justin Sun — has sued a partner, First Digital, alleging misappropriation of funds placed with it. The U.S. Securities and Exchange Commission accused TrueUSD of sending backing to “a speculative and risky offshore commodity fund.”
Celsius says it “has been unable to redeem stablecoins issued by defendants worth approximately USD $12.92 million.” The estate describes a March 2023 timeline in which “Celsius emailed a redemption request to TrustToken, seeking to redeem certain holdings.” The complaint says Archblock waited nearly a month to answer and later told Celsius that GBP, CAD and AUD funds were inaccessible after Prime Trust entered receivership in Nevada.
On March 26, 2024, Archblock CEO Alex de Lorraine warned by email of a problem with collateral for the TGBP stablecoin and said Archblock “suspects a potential default by an underlying investment fund.” Celsius uses this to argue that some TGBP collateral was placed with an investment fund rather than kept in cash or cash equivalents; Archblock denies that claim.
The TrueCoin website includes material about legal actions tied to Prime Trust and states that certain foreign currency assets “were held for the benefit of TrueCoin token holders.” Reports also say Justin Sun provided liquidity to support TrueUSD after the takeover. Protos reached out to Archblock and TrueCoin for comment but received no response before publication.
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