A new controversy is shaking the foundations of the crypto world. Justin Sun, founder of TRON and a key figure in the Web3 ecosystem, has accused First Digital Trust (FDT), the issuer behind the FDUSD stablecoin, of mismanaging nearly $500 million in user assets. According to Sun, this act of financial misconduct could surpass even the infamous FTX collapse in terms of recklessness and damage.
Sun’s allegations center around an unauthorized transfer of $456 million in user funds to a Dubai-based third party. He claims the transfer was made without user approval and with no collateral, highlighting an alarming lack of internal control mechanisms. Unlike FTX, which at least maintained the illusion of structure through collateralized lending, FDT’s alleged action appears completely unregulated and opaque.
No Transparency, No Accountability
Sun didn’t hold back in naming FDT’s CEO, Vincent Chok, accusing him of deliberately avoiding public scrutiny after the scandal surfaced. While Sun acknowledged that FTX’s founder, Sam Bankman-Fried, made several critical errors, he pointed out that SBF attempted to cooperate with regulators and took steps to recover user funds. In contrast, he criticized Chok for staying silent and showing no signs of responsibility or engagement.
According to Sun, the absence of transparency and failure to inform the public reflect not just poor leadership but intentional avoidance. This, he argued, raises serious concerns about the overall integrity of the FDUSD ecosystem.
Sun Calls for Action from Hong Kong Authorities
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In an open appeal, Sun urged the Hong Kong government to intervene with the same urgency and decisiveness that U.S. regulators demonstrated during the FTX crisis. He warned that Hong Kong’s ambition to become a global financial hub is at risk if it doesn’t act swiftly to restore market confidence.
Sun emphasized that the scandal is not merely a technical oversight but a potential systemic threat to digital asset trust. He called for strict penalties and a thorough investigation to reestablish transparency and accountability in the region’s digital finance sector.
$50 Million Bounty for Whistleblowers and Investigators
To support an in-depth investigation, Sun has launched a $50 million bounty program aimed at uncovering all involved parties and exposing the full scope of the incident. He also confirmed ongoing talks with Hong Kong lawmaker Johnny Wu, indicating that the legal process is already gaining momentum.
The Bit Journal will continue to follow this developing story closely as more details emerge. The implications for the broader stablecoin market, regulatory frameworks, and investor trust are potentially massive.
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