Tron boss Justin Sun calls First Digital Trust Skandal “far worse” than FTX
- Justin Sun accuses First Digital Trust of having misappropriated $ 456 million, and describes it as worse than the $ 8 billion collapse from FTX.
- FDT denies the misconduct, accuses TUSD emittent Techteryx and refers to ongoing AML/KYC compliance problems.
Tron founder Justin Sun has publicly accused First Digital Trust (FDT) of misappropriating $ 456 million in customer money. He claims that the alleged misconduct surpasses the failed stock exchange FTX.
Sun explained that FDT has postponed funds without the knowledge of the user or without adequate collateral. The allegations triggered market fluctuations and attracted political attention in Hong Kong.
Sun compares FDT actions with the FTX crash
Like CNF reportedOn April 5, Justin Sun published a number of articles on X, in which he explained that the FDT scandal was “ten times worse” than FTX. He explained that FTX had misused user funds, but led internal records that represented the abuse as pledged loans that were secured by digital assets such as FTT, SRM and MAPS tokens.
Protect users and protect HK
First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets. There are significant loopholes in both the trust licensing process in…
— H.E. Justin Sun
(@justinsuntron) April 2, 2025
According to Sun, FDT handled the situation differently. He claimed that the trust company, the reserves for stable coins such as FDUSD and TUSD, has diverted $ 456 million in deposit funds without the consent of users or collateral to a company based in Dubai.
He also claimed that this transaction was disguised as a loan to Aria Commodities DMCC, a company that works in risky sectors such as mining and renewable energies.
In contrast to Sam Bankman-Fried (SBF), who invested in companies such as Robinhood and Anthropic, SUN said that FDT’s actions served in personal enrichment. He accused the CEO of FDT, Vincent Chok, to deliberately ignore the allegations and not to participate in a recovery procedure.
Lawsuit and market reaction
The controversy goes back to a lawsuit in Hong Kong by Techteryx, the issuer of Trueusd (TUSD), in which FDT is accused of misappropriating his reserves. Techteryx, which is rumored, that he owned Justin Sun, claimed that it was forced to ask Sun for emergency aid after the non -authorized transfer had illiquid.
The funds, which were originally intended for the Aria Commodity Finance Fund, were allegedly redirected without approval. As a result, the TUSD reserves were inaccessible, which led to a liquidity bottleneck that temporarily also affected the FDUSD stable. FDUSD fell to $ 0.87 for a short time before stabilizing over $ 0.99 after the return of the returns were resumed.
After these events, SUN exposed a bounty of $ 50 million to create an incentive for informants and to support the restoration. How CNF reportedhe also met with the Hong Kong Parliamentarian Johnny Wu to urge regulatory measures. Justin Sun argued that the problem not only threatens investors’ trust, but could also harm Hong Kong’s financial world if it was not traded quickly.
FDT response and ongoing legal dispute
First Digital Trust rejected all accusations and denied any misconduct. In a public statement, FDT said that TechTeryx’s assets never postponed it without express consent. The company insisted that any illiquidity was the result of decisions made by Techteryx itself, and not the result of FDT’s misconduct.
Fdt also referred to ongoing anti-money laundering (AML) and KYC problems (Know your Customer) as the reason for the delayed returns. The company claimed that Techteryx refused to disclose the identity of its economic owner, which made compliance with compliance with. FDT affirmed His solvency and transparency and referred to a publicly accessible certification report in which the ISIN numbers are listed on every FDUSD token.
FDT explained It prepares legal steps to protect his name and accused Sun to want to distract the focus from the mistakes of Techteryx. The company claimed that FDUSD was fully secured and that the withdrawal processes worked normally.
In the meantime, some have in the crypto community Parallels between Sun’s public campaign and the strategy of Binance CEO Changpeng Zhao in 2022 pulled . Zhao’s public criticism of FTX led to a liquidity crisis that finally triggered the collapse of the stock exchange. Critics are now wondering whether Sun uses a similar tactic against FDT.
So far, FDT has continued to deal with returns and has not reported any solvency problems. It is expected that the regulatory authorities and courts in Hong Kong will determine the accuracy of the claims made by both sides.
No Comments