Tron founder Justin Sun has expressed support for the lawsuit from First Digital Trust (FDT), which concerns a dispute over the TrueUSD stablecoin. Sun accused FDT of illegally appropriating TUSD reserves amounting to $456 million, which he claims were redirected not to the designated fund but to an external Dubai company.
This is reported by Business • Media
In response, FDT categorically denied the accusations, calling them a smear campaign, and announced its intention to file a counterclaim. Meanwhile, FDT temporarily lost its peg to the dollar, raising concerns in the market.
Situation with TUSD Reserves
Justin Sun asserts that FDT, along with other TUSD service providers, including TrueCoin, orchestrated a theft using forged documents and collusion. He also labeled the company insolvent, citing a report indicating that FDT’s net liabilities stood at $13 million as of June 2024.
“FDT is not only insolvent but also involved in numerous crimes,” Justin Sun stated in his Twitter post.
Reward Proposal
As part of his investigation, Justin Sun announced a reward of up to $50 million for whistleblowers willing to provide details regarding the alleged theft. He also urged the Hong Kong authorities to strengthen regulations on trust companies, emphasizing the weaknesses of current norms. Local legislator Johnny Ng expressed support for the need for legislative changes to improve the situation.
It is worth noting that it was previously reported that the U.S. Securities and Exchange Commission postponed its review of Justin Sun’s activities.