Sun Yuchen is embroiled in a legal battle in Hong Kong concerning the management of TrueUSD stablecoin reserves. He alleges that First Digital Trust exploited regulatory loopholes to transfer $456 million in reserves to Dubai's Aria Commodities for illiquid commodity trading, undermining stablecoin backing principles. The Dubai International Financial Centre court has frozen Aria's assets, citing 'serious issues requiring adjudication.' Sun, alongside Legislative Council member Wu Zhaoxie, is advocating for enhanced oversight of trust companies as Hong Kong formulates its stablecoin regulations.