In the grand tapestry of human folly, a new thread has been woven, courtesy of the erstwhile esteemed First Digital Trust. Justin Sun, the venerable founder of Tron, has proclaimed to the world, with all the solemnity of a Russian novelist, that this Hong Kong-based fiduciary has succumbed to the abyss of insolvency. Alas, its clients are left to face the cruel whims of fate, unable to redeem their funds.
With the urgency of a man forewarning of an impending storm, Sun took to the digital town square (X, as the youth call it) to implore users to secure their assets with all due haste. His clarion call also beckoned regulatory bodies to intervene, lest the fertile soil of the region nurture further financial chicanery.
The genesis of this debacle lies in the mismanagement of a staggering $456 million, reserves of the TrueUSD stablecoin, now rendered as illiquid as a lover’s scorned heart. Legal documents, those unforgiving chroniclers of human error, reveal that Techteryx, the issuer of TUSD, had entrusted First Digital Trust with the sacred duty of managing its reserves. Little did they know, their trust was about to take an unplanned journey into the abyss.
It is alleged that First Digital Trust, with the subtlety of a thief in the night, diverted these funds into the Aria Commodity Finance Fund, a Cayman Islands entity, which then, in a dazzling display of financial sleight of hand, channeled the money into an unauthorized Dubai-based entity, Aria Commodities DMCC. Sun, in a gesture of benevolence, provided emergency funding to Techteryx, a lifeline in the tempestuous sea of cryptocurrency.
Protect users and protect HK
First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets. There are significant loopholes in both the trust licensing process in…
— H.E. Justin Sun 🍌 (@justinsuntron) April 2, 2025
A Drama Unfolding
Techteryx’s legal filings are a scathing indictment, accusing First Digital Trust of misappropriation and fraudulent misrepresentation, a veritable laundry list of financial malfeasance. Yet, in a stunning display of unrepentance, FDT CEO Vincent Chok stands firm, denying any wrongdoing with the conviction of the innocent, or perhaps, the cunning of the seasoned.
This maelstrom swirling around TUSD is but the latest chapter in a saga replete with turmoil, including the ignominious collapse of its former banking partner, Prime Trust, and a 2024 SEC settlement with TrueCoin and TrustToken, a cautionary tale of misleading investors about the stablecoin’s reserves, a story as old as the hills, yet as fresh as yesterday’s headlines.
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2025-04-02 19:09