TrueUSD
TUSD#93TrueUSD (TUSD) is a US dollar stablecoin issued by Techteryx, whose reserves were hit by a $456 million shortfall now tied up in court.
Passes our Shariah screening. Needs caution: excessive uncertainty (gharar). Fails: business model.
- 6 pass
- 1 caution
- 1 fail
Verdict history
- HalalCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold TrueUSD?8 Shariah criteria
6 pass · 1 caution · 1 failHolding TUSD pays no interest; reserve income stays with the issuer, but platforms offer lending-based yields on TUSD.
Riba is interest or any fixed increase on a loan or on an exchange of money. The white paper says no interest is paid on users' TUSD accounts, so holding the token earns nothing. CryptoUmmah, the first authoritative source that rates TUSD, makes riba its main concern, but that concern is the interest earned on the reserves, which is judged under business model. It also notes yields offered on TUSD by custodial platforms, usually from lending; these are opt-in products assessed under yield, but they lower the score slightly within pass.
TUSD is a redeemable claim on dollar reserves held by an issuer.
TUSD is meant to be redeemable 1:1 for US dollars by verified customers, so it is a real claim on an issuer, not an empty record. Malaysia's SC Shariah Advisory Council recognises digital currencies as property and classes currency-backed ones as currency. The reserve problems concern the issuer's management, which is judged under uncertainty, so this criterion is at the maximum.
TUSD is built to stay at $1 and has no chance-based feature.
Maysir means gambling, or gains that depend purely on chance. TUSD traded at about $0.9998 in October 2026 and is held as a dollar unit, not to profit from price swings. It has no lottery or chance-based feature, so the criterion is at the maximum.
The issuer may earn interest and investment returns on the reserves, and reserves were once lent into commodity finance.
This criterion looks at how the issuer earns. The February 2026 white paper says TUSD may collect interest or investment returns on fiat deposits and that banking partners may hold investments that generate yield to cover its costs; CryptoUmmah says the reserves include US Treasury bills. An issuer that pays holders nothing earns mainly from this interest. Earlier, reserves were placed in a commodity finance fund and loans through Aria entities. Income from interest is far above the 5% threshold, so the criterion fails.
A $456 million reserve shortfall, an SEC settlement over misrepresented reserves and unclear current composition.
Gharar means excessive uncertainty or lack of transparency. TrueUSD publishes daily attestations, but its record is poor. In September 2024 its former owners settled SEC charges that they marketed TUSD as fully backed while reserves sat in a risky offshore fund. About $456 million of reserves was diverted to Aria Commodities DMCC and became illiquid; Justin Sun covered the gap, and in November 2025 a Dubai court froze $456 million while recovery continues. The white paper does not break down current reserve assets. The criterion is at the bottom of caution.
- SEC press release 2024-145 (TrueCoin and TrustToken)
- TrustToken, TrueCoin Settle With SEC Over Fraud Accusations in Stablecoin Investing (CoinDesk)
- Justin Sun Bailed Out Techteryx's TUSD as Stablecoin's $456M Reserves Were Stuck in Limbo, Filings Show (CoinDesk)
- Dubai Court Freezes $456M Linked to Justin Sun's Bailout of TrueUSD Issuer Techteryx (CoinDesk)
TUSD is used mainly as a dollar unit for trading and moving value.
This criterion looks at what the asset is actually used for. TUSD is used as a dollar trading pair and to move dollar value across networks such as TRON and Ethereum. Lending products exist, but no source shows a notable share of supply in them, so the criterion is at the maximum.
TUSD can be bought outright and held in a self-custody wallet.
This criterion asks whether the token can be owned in a normal, fully paid way. TUSD trades spot and can be withdrawn to self-custody wallets on several networks, and verified customers can redeem it for dollars. It does not exist only as a leveraged product, so the criterion is at the maximum.
TUSD offers an on-chain dollar, but misrepresented reserves exposed holders to hidden risk.
Maslahah weighs public benefit against harm. TUSD gives users a dollar unit that settles on public blockchains. A concrete harm is that holders were told the token was fully backed while reserves were placed in risky and later illiquid investments, as the SEC settlement and the Aria dispute show; the shortfall was covered by an outside party rather than the reserve structure. The criterion stays in pass with a lower score.
How you can use it
Tap a card for the ruling and sourcesBuying TUSD outright and holding it, on an exchange or in your own wallet, is acceptable at this verdict. If TUSD is treated as money, exchange it on the spot and at equal value when swapping for dollars or other stablecoins.
Not available: no exchange-traded fund holding TUSD was found. A fund holding it would be judged like spot, and its structure would need checking separately (no interest income, no lending).
TUSD can be used to pay and settle on-chain. Indonesia's MUI (tier 1) holds that using cryptocurrency as currency is haram, so paying with it is caution.
Not available natively: TUSD is not a proof-of-stake coin, so there is no validation work to be paid for. Products marketed as 'TUSD staking' pay returns from lending or reserve income, covered under lending and yield.
Always fail: borrowing to trade with leverage, without full delivery (AAOIFI SS 20).
Always fail: futures, perpetuals and options are deferred exchanges without delivery, usually with leverage (AAOIFI SS 20).
Lending TUSD for a return, on DeFi protocols or exchange lending programmes, is interest on a loan of money (riba).
Exchange 'earn' products on TUSD pay a percentage return on a dollar balance, funded by lending or reserve interest; this is treated as interest whatever it is called.
Scholars quotes
The opinion on this is the same as doing the same with any halal assets such as shares – 1) is permissible, 2) is more debatable and there are differing opinions on short-term trading.As I mentioned at the beginning of this article it is not necessary to substantiate the permissibility of something as long as there are no prohibited factors involved in it or surrounding it.Penggunaan cryptocurrency sebagai mata uang hukumnya haram, karena mengandung gharar (ketidakjelasan), dharar (bahaya) dan bertentangan dengan Undang-Undang nomor 7 tahun 2011 tentang Mata Uang dan Peraturan Bank Indonesia nomor 17 tahun 2015 tentang Kewajiban Penggunaan Rupiah di Wilayah Negara Kesatuan Republik Indonesia.Sebagaimana mata wang yang lain, mata wang digital hendaklah tidak digunakan sebagai bayaran kepada barangan, perkhidmatan dan aktiviti tidak patuh Syariah seperti pembelian dadah, pelacuran, perjudian dan pendanaan aktiviti keganasan serta penggubahan wang haram.The SAC has also resolved that investment and trading of Digital Assets that fulfil the above requirements and which are traded on Digital Asset Exchange (DAX) registered with SC are permissible.If a digital currency is backed by ribawi items comprising gold, silver and currency, it is categorised as a currency from Shariah perspective. Hence, the trading of such digital currency is subject to the principle of bai` al-sarf.Third: In light of the above and given the significant risks associated with this type of currencies and the instability of their transactions, the Council of the Academy recommends pursuing research and studies on issues affecting its ruling.Bitcoin is a digital currency that does not meet the legal and Sharia criteria that make it a currency subject to the rulings of dealing with official legal currencies recognized internationally.بناءً على ذلك: فلا يجوز شرعًا تداول عملة "البتكوين" والتعامل من خلالها بالبيعِ والشراءِ والإجارةِ وغيرها، بل يُمنع من الاشتراكِ فيها؛ لعدمِ اعتبارِها كوسيطٍ مقبولٍ للتبادلِ من الجهاتِ المخُتصَّةِ، ولِمَا تشتمل عليه من الضررِ الناشئ عن الغررِ والجهالةِ والغشِّ في مَصْرِفها ومِعْيارها وقِيمتها، فضلًا عما تؤدي إليه ممارستُها من مخاطرَ عاليةٍ على الأفراد والدول.According to research and opinion of experts so far, cryptocurrency is not considered ‘ maal ’ (wealth) in Sharia.Muhammadiyah memandang transaksi dan investasi kripto pada dasarnya mubah (boleh) tetapi dengan syarat tertentu.Our current position is 'tawaquf'; we can't say it is halal or haram, but we say it is better not to engage in itFiat-backed stablecoins are generally considered permissible, fully backed by the underlying currency or not, as long as this information is transparently disclosed to the users.AI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
Section in preparation
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