Deep Dive
1. Archblock Files for Chapter 11 (10 February 2026)
Overview: Archblock LLC, the entity formerly known as TrustToken which launched TrueUSD, filed for Chapter 11 bankruptcy protection. The filing lists over $100 million in liabilities against less than $10 million in assets, naming Alameda Research as a potential creditor. This follows a lawsuit from bankrupt lender Celsius Network, which alleges Archblock misrepresented TUSD's collateralization.
What this means: This is bearish for TUSD's long-term credibility because it reveals severe financial distress at the corporate level responsible for the stablecoin. However, the immediate price impact has been muted, trading at $0.999 as of 28 February 2026, suggesting market perception may be separating the token from its issuer's troubles.
(Yahoo Finance)
2. Dubai Court Freezes $456M in Assets (13 November 2025)
Overview: The Dubai International Financial Centre (DIFC) court issued a worldwide freezing order on $456 million linked to TUSD reserves. The court found credible evidence that custodian First Digital Trust had diverted funds to Aria Commodities DMCC for unauthorized, illiquid investments.
What this means: This is a critical development for recovering user funds and is neutral-to-bullish for holder protection, setting a legal precedent. It underscores the severe reserve management failures that occurred, which Tron founder Justin Sun had to address with a nearly $500 million personal bailout to maintain the peg in early 2025.
(Cryptonews)
3. S&P Gives TUSD Lowest Stability Score (20 November 2025)
Overview: S&P Global Ratings assigned TUSD a score of 5 ("weak"), its lowest possible rating. The assessment cited scarce reserve information, reliance on a single custodian, and unclear governance, concluding the stablecoin is unlikely to maintain its $1 peg without external support.
What this means: This is bearish for institutional trust and adoption, as it formally highlights transparency and solvency risks that traders have long monitored. The rating reinforces the dependency on Justin Sun's backing for stability, making TUSD's health sensitive to his continued support.
(The Defiant)
Conclusion
TrueUSD's trajectory is defined by legal battles over missing reserves and the bankruptcy of its founding entity, yet direct price stability has been maintained through external capital. Will ongoing litigation successfully recover assets, or does TUSD's resilience remain permanently tied to its benefactor's support?