The controversy surrounding TUSD reserves from last year has finally come to an end in the Dubai court.

The matter dates back a few months when Sun Yuchen launched a series of tweets attacking the custodian First Digital Trust. The core accusation was quite explosive—this institution allegedly misappropriated the reserve funds of TUSD and used them for investment operations that were completely inconsistent with the nature of "reserve funds." It is important to understand that the lifeblood of stablecoins is the 1:1 reserve, and if this kind of manipulation is confirmed, it would be a fatal blow to the trust foundation of the entire project.

The Dubai court's ruling is now on the side of the rights protection party, which can be considered a determination of this custody dispute. For the stablecoin industry, this case serves as a wake-up call - the boundaries of the custodial institutions' authority need to be properly addressed.