Justin Sun Claims First Digital Trust Scandal is ‘Significantly Worse Than FTX’

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Oh dear! Justin Sun, the founder of TRON, is making quite a ruckus. He’s turning up the heat on First Digital Trust (FDT), the company behind the FDUSD stablecoin, accusing them of swiping a whopping $500 million from their clients’ pockets. Naughty, naughty!

In a post on X (formerly known as Twitter, but who’s counting?), Sun declared the FDT scandal to be “ten times worse” than FTX’s collapse. You remember FTX, right? That little hiccup where they went belly-up after a bank run uncovered an $8 billion hole in their accounts? Well, according to Sun, this FDT disaster makes that one look like a tea party!

Justin Sun Makes Bold Claims About FDT, No One’s Surprised

Now, Sun’s not mincing words here. He’s comparing FDT’s “little escapade” to FTX, and not in a good way. He says FTX, despite its many flaws, at least tried to pretend it was all above board with some phony internal loan system. FDT, on the other hand? Straight-up stealing. No pretense. No nothing. Just a big, fat heist!

“FDT simply siphoned off $456 million from TUSD’s custodial funds without client authorization or knowledge, and booked it as loans to a shady third-party company in Dubai with absolutely no collateral,” Sun wagged his finger in a dramatic post. Well, well, well. That sounds dodgy!

“FDT simply siphoned off $456 million from TUSD’s custodial funds without client authorization or knowledge, and booked it as loans to a dubious third-party Dubai company without any collaterals,” Sun claimed.

But wait, there’s more! Sun didn’t stop at just poking fun at FDT. He reminded everyone that while FTX’s Sam Bankman-Fried (SBF) was indeed a bit of a disaster, at least SBF tried to funnel some of his ill-gotten gains into reputable companies like Robinhood and Anthropic AI. Not FDT though – according to Sun, they just shoved the funds into private entities for personal gain, with zero regard for actual investments. That’s *a lot* of greed for one company, huh?

And then there’s the CEO of FDT, Vincent Chok Zhuo. According to Sun, this guy is walking around like nothing ever happened. Not a care in the world! No apology, no “Oops, we goofed,” just a smug silence. Meanwhile, SBF at least made some effort to work with authorities and make things right (in his own way). Zhuo? Not so much. Sun claims he’s been “deceptive and malicious” and is pretending that the whole mess never even occurred. Oh, Vincent, you sly dog!

“Vincent Chok has acted deceptively and maliciously, pretending nothing happened when exposed,” Sun stated.

With all this madness going on, Sun’s calling on Hong Kong to do something – fast! He’s urging the city’s authorities to take action, and he’s not being shy about it. He wants them to be as quick and decisive as the US regulators were when FTX went belly-up. After all, Hong Kong’s reputation as a financial hub is on the line, and we can’t have the fraudsters running amok like a pack of wild wolves.

“Hong Kong must act like its US counterparts—swiftly, decisively, and effectively. We cannot allow the fraudsters to continue their pyramid scheme against the public,” the crypto entrepreneur concluded.

And just to really kick things into high gear, Sun’s even offering a $50 million bounty for anyone who can uncover the dastardly deeds of FDT. A bounty! He’s also had a chat with Hong Kong lawmaker Johnny Wu about how they might regulate all this mess. Well, well, well, things are getting spicy!

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2025-04-06 20:12