Justin Sun Doubles Down on Fraud Claim Against First Digital Despite Defamation Suit
Justin Sun Still Adamant on Allegations of $456M Mismanagement by First Digital, Urges Regulatory Reform Amid Threats of Legal Action
Tron founder Justin Sun is still resolute in his claims that First Digital Trust (FDT) mismanaged $456 million in TrueUSD (TUSD) reserves. This is despite FDT moving forward with a defamation lawsuit against him.
Sun claims that FDT unlawfully diverted the stablecoin’s backing funds to Dubai-based Aria Commodities DMCC instead of the designated Cayman Islands fund, Aria CFF, between 2023 and 2024. Reports also reveal that both Aria Commodities’ owner and Aria CFF’s CEO have familial ties, suggesting possible conflicts of interest.
Despite the legal threats, Sun has restated his commitment to transparency and accountability.
“I welcome any legal process that brings more facts into the open. If that means taking it to court or continuing to shine a light through public disclosures, I will do both.” Sun tweeted on X.
Legal and Financial Pressure on FDT Intensifies
The controversy was born following Sun’s public accusations on April 3rd. Sun tweeted on X, telling users that the Hong Kong-based fiduciary was “effectively insolvent” and urging users to take action to protect their assets.
This prompted FDT to publish documents showing successful redemptions in an effort to prove it was still solvent. However, Sun hit back, citing financial disclosures that allegedly show FDT has been insolvent since 2023. These claims caused the FDUSD stablecoin to temporarily de-peg from the dollar, dropping as low as $0.76.
Furthermore, Sun accused the platform of misappropriating its reserves, citing court documents. He alleged that First Digital Trust (FDT), which Techteryx delegated to manage TrueUSD’s reserves, redirected $456 million to Aria Commodities DMCC, who invested them in illiquid assets. He blamed Vincent Chok, CEO of FDT, accusing him of colluding with TUSD service providers to attempt a rugpull.
Justin Sun Pushes for Regulatory Reforms
As the hearing date draws closer, Sun has highlighted the systemic issues exposed by the case. Speaking at a recent press conference in Hong Kong, he criticized the territory’s regulatory framework for trust companies, warning that a lack of oversight has enabled large-scale financial fraud.
Additionally, he urged regulators and law enforcement to address the issues, warning that Hong Kong’s reputation as a global financial center was at stake. He has also promised whistleblower assistance, offering a $50 million bounty to anyone who can provide credible evidence of misconduct within FDT.
