Gushiken Yona
The battleground shifts from social media to formal channels. Crypto figure Justin Sun now presses explosive fraud allegations against First Digital Trust, issuer of the FDUSD stablecoin, directly with Hong Kong lawmakers and regulators. His move escalates a bitter dispute that puts hundreds of millions of dollars, and the city’s financial reputation, squarely in the spotlight.
Sun, a Chinese-born cryptocurrency entrepreneur, business executive and founder of TRON, detailed his actions earlier this week. He announced on the social platform X that he had taken concrete steps beyond online posts.
Justin Sun Escalates FDUSD Fraud Fight to Hong Kong Regulators
The Tron founder said he met personally with Hong Kong Legislative Council member Johnny Ng. During this meeting, Sun said he presented materials supporting his claims against First Digital Trust, known as FDT. He specified these materials were submitted “to local regulators and judicial authorities.”
He framed the move as necessary, calling the situation “a major international financial fraud involving traditional financial institutions and web3 platforms.” In his posts, Sun stressed the importance of the case for Hong Kong’s status. “This matter concerns the reputation of Hong Kong as a financial center and the safety of users’ assets,” he wrote.
Hong Kong Lawmaker Confirms FDUSD Complaint, Signals Potential Oversight Reform
Ng confirmed receiving the complaint from Sun. He addressed the situation publicly on X, stating that if the serious allegations against FDT are proven, “enforcement authorities will definitely take action.”
While reassuring international investors about Hong Kong’s legal framework, Ng acknowledged potential systemic issues. He noted his office had received other complaints this year related to trust companies. “I believe there is a need to discuss how to improve the regulatory framework for relevant trust companies,” Mr. Ng added, suggesting a possible review of oversight practices.
FDT Denies FDUSD Fraud Claims, Blames Ongoing Dispute Over TUSD
First Digital Trust strongly refuted Sun’s accusations. The company issued statements calling the claims “false information” and a deliberate “smear campaign.” FDT maintained that its stablecoin, FDUSD, remained fully backed by reserves and is solvent.
The firm linked Sun’s actions to a separate, ongoing dispute involving another stablecoin, TrueUSD (TUSD), whose reserves FDT previously managed. FDT accused Sun of choosing public attacks over established legal routes related to that matter. The company stated it is seeking legal counsel and would take action to protect its reputation.
The public conflict briefly affected the FDUSD stablecoin market midweek, causing a temporary dip below its $1 peg before it recovered. Binance, the primary holder of FDUSD, affirmed the stablecoin’s backing remained secure during the episode.
Read More
- BONE Volume Soars 50%, Long-Term Holders Stay Strong
- Shibarium Hits 1B Completed Transactions—Milestones Keep Coming
- SHIB Army Tightens Grip: Hodlers Surge, Speculators Flee!
Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
