Sun Accuses FDT of $500M Dubai Bank Transfer
Sun Accuses FDT of $500M Dubai Bank Transfer
Tron founder Justin Sun has escalated his accusations against First Digital Trust (FDT), claiming the firm transferred $500 million in customer funds to banks in Dubai. In a May 3rd X post, Sun specified several institutions, including Mashreq Bank, Emirates NBD, Abu Dhabi Islamic Bank (ADIB), and EFG, as recipients of these funds.
Dubai Investigation Urged
Sun also named individuals allegedly involved: Christian Alexander Boehnke, De Lorraine Elbouef, FDT CEO Vincent Chok, Yai Sukonthabhund, Matthew William Brittain, and Cecilia Teresa Brittain. He asserts these individuals, holding executive positions within FDT and related entities, authorized or facilitated the alleged misappropriation of customer assets. Sun provided a diagram illustrating the alleged flow of funds.
This controversy unfolds as Dubai positions itself as a cryptocurrency hub, implementing various pro-crypto initiatives. Sun is urging Dubai banks, regulators, and government bodies to investigate the transfers, freeze suspicious funds, conduct internal audits, and publicly disclose any anomalies. He emphasizes the importance of preventing Dubai from becoming a haven for financial crime.
"Dubai must not become a safe haven for fraud and money laundering. Banks must conduct internal reviews, freeze suspicious inflows immediately, and report them proactively. Do not become enablers of criminal activity," Sun stated.
This dispute adds to the ongoing conflict between Sun and the Hong Kong-based custodian. Sun previously compared the alleged FDT embezzlement to the FTX scandal, describing it as "far worse" due to the lack of loan collateral or user approval. He launched a $50 million bounty program to aid investigations and a dedicated website to expose the alleged scam. FDT denies all accusations and has filed a defamation lawsuit against Sun. Hong Kong regulators are reviewing local trust companies’ conduct in response to the allegations.
The market capitalization of FDT's FDUSD stablecoin has significantly decreased since the dispute began, dropping from over $2.5 billion to approximately $1.4 billion at the time of writing.
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