Celsius Estate Files Lawsuit Against TrueUSD Operators Over Fund Risks

TLDR

• The Celsius estate has filed a lawsuit against TrueUSD operators, including Archblock, TrueCoin, and TrustToken.
• Celsius accuses these firms of gambling customer deposits by investing in risky offshore assets without fiduciary duties.
• Archblock denied the allegations but remains involved in an ongoing legal dispute with Celsius over mismanagement of funds.
• Techteryx, a firm linked to Justin Sun, now manages TrueUSD and has filed its own lawsuits related to misappropriated funds.
• Celsius has been unable to redeem approximately $12.92 million in stablecoins due to issues with the firms’ handling of funds.

In October 2025, the Celsius estate filed a lawsuit against Archblock, TrueCoin, and TrustToken. The complaint claims that these firms, responsible for operating TrueUSD and other “True” stablecoins, used customer deposits for risky offshore investments. Celsius alleges that these firms partnered with entities that did not have fiduciary duties, leading to potential financial losses.

Celsius Estate vs. TrueUSD Operators: Allegations of Mismanagement

The Celsius estate accuses Archblock, TrueCoin, and TrustToken of gambling customer deposits on speculative investments. The lawsuit highlights that these firms failed to maintain the integrity of their clients’ funds, investing in risky assets without proper safeguards. Celsius claims these actions put customer funds at unnecessary risk, ultimately compromising the stability of the stablecoins.

In response, Archblock denied all allegations in its November 2025 statement. The company stated that it followed all necessary procedures and acted within the boundaries of the law. However, despite these claims, Celsius continues to argue that these firms’ decisions directly led to financial harm for their clients.

TrueUSD’s Legal Troubles and the Involvement of Techteryx

Techteryx, a firm connected to Justin Sun, now operates TrueUSD after taking over from its previous management. This company has also filed legal complaints against First Digital, alleging that it misappropriated funds placed with them. These funds were allegedly invested in risky assets, an accusation that has drawn the attention of the U.S. Securities and Exchange Commission (SEC).

The SEC’s lawsuit against TrueUSD mirrors many of Celsius’s accusations, including claims of improper management of TUSD’s dollar backing. The SEC also claims that funds were sent to a speculative offshore commodity fund. The accusations underline the ongoing tension between different entities involved in the management and oversight of TrueUSD and its affiliated stablecoins.

Redemption Issues and Prime Trust Receivership

Celsius has been unable to redeem certain stablecoins, valued at approximately $12.92 million, according to its claims. In March 2023, Celsius sent a redemption request to TrustToken, but received no response for nearly a month. When Archblock finally responded, it revealed that certain funds were inaccessible for redemption due to Prime Trust being placed into receivership.

This situation worsened in 2024 when Archblock warned Celsius about potential issues with the collateral backing the TGBP stablecoin. The warning came after Archblock discovered a possible default by an underlying investment fund. Celsius claims this is evidence that the collateral for TGBP was invested in speculative assets instead of safer alternatives like cash or government securities.

Despite Archblock’s denials, the ongoing legal battle highlights concerns over the management and transparency of the firms involved. Celsius’s lawsuit is just one of many that illustrate growing tensions within the stablecoin sector.

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