Justin Sun says First Digital Trust is insolvent after rescuing TUSD stablecoin

The founder of Tron, Justin Sun, said publicly that First Digital Trust, a trustee based in Hong Kong, is insolvent and unable to make buyers of customer funds.

In a post x, sun Users exhorted Take immediate measures to guarantee their assets and has called for regulatory intervention in order to prevent new financial fraud in the region.

Sun’s statement comes as legal deposits reveal that nearly $ 456 million in Trueusd stable The reserves have been made unlimited due to unauthorized investments.

Techteryx, the Tusd transmitter, had entrusted the FDT with the management of its reserves, but the documents deposited claim that the company has diverted funds in the funding fund of the basic products of ARIA, an entity registered on the Cayman Islands.

Instead, money would have been channeled in an unauthorized entity based in Dubai, Aria Commodities DMCC. Sun Sun has provided emergency funding to Techteryx, according to Coindesk statement.

In other words, nearly $ 456 million in Trueusd’s reserves have been poorly managed, which aroused legal action and concern about the supervision of Stablescoin.

Sun stressed that Hong Kong’s financial integrity is in danger, declaring: “There are important shortcomings in the trust license process in Hong Kong and in the management of internal risks of its financial system. I rot regulators and the requirements of the loche to take rapid measures. ”

Legal fallout

Techteryx Legal deposits Accuse the TFD of diversion and a false fraudulent declaration. However, the CEO of FDT, Vincent Chok, denied any reprehensible act, insisting that the company followed the instructions as indicated.

The controversy follows wider problems surrounding the Tusd, including the collapse of the old banking partner Prime Trust and a 2024 sec regulation With Truecoin and TrustoKen on misleading investors on the Stablecoin reserves.