Sun Accuses First Digital Trust of $500M Fraud
Sun Accuses First Digital Trust of Massive Fraud
TRON founder Justin Sun has leveled serious accusations against First Digital Trust (FDT), the issuer of the FDUSD stablecoin, claiming $500 million in client funds were embezzled. This surpasses even the impact of the FTX collapse, according to Sun.
Comparing FDT to FTX: A Case of Alleged Theft
In a recent X post, Sun stated that the FDT situation is "ten times worse" than FTX. While acknowledging FTX misused user funds, he argues FDT's actions constitute outright theft without any internal mechanisms or user consent. FTX, he claims, at least attempted to structure its misuse of funds through purported loans secured with assets like FTT, SRM, and MAPS tokens. In contrast, Sun alleges FDT directly siphoned funds to a Dubai-based company, without authorization or collateral.
Sun further highlighted that while Sam Bankman-Fried (SBF) misused funds, much of it went into investments in established firms like Robinhood and Anthropic. FDT, however, allegedly diverted assets for personal gain without legitimate investment.
Targeting FDT CEO and Calling for Regulatory Action
Sun also criticized FDT CEO Vincent Chok Zhuo for his perceived lack of accountability following the alleged misconduct. He contrasts Chok's apparent indifference with SBF's attempts to recover assets and cooperate with authorities. Sun urged Hong Kong authorities to swiftly investigate and take decisive action, emphasizing the risk to Hong Kong's reputation as a financial hub.
To bolster investigations, Sun launched a $50 million bounty program to expose the alleged wrongdoing. He also engaged with Hong Kong lawmaker Johnny Wu to discuss regulatory interventions. The situation underscores the need for robust regulatory frameworks and transparent practices within the cryptocurrency industry.
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