Justin Sun Exposes $456M Hong Kong Financial Scandal

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Justin Sun Calls For Hong Kong Trust Reforms After $456M TUSD Fund Scandal

Lately, Justin Sun, creator of Tron, offered emergency financing for TrueUSD (TUSD) when its provider, Techteryx, encountered a liquidity predicament totaling $456 million due to poor-performing investments. Despite asserting that he was merely an advisor and not directly connected with TrueUSD, Sun played a vital role in providing financial assistance during the crisis.

An intense disagreement arose between Justin Sun, creator of Tron, and First Digital Trust (FDT), centering around allegations that funds from Techteryx’s TrueUSD reserves were improperly used. Sun asserted that some individuals had misused the money, leading him to take discreet action to prevent any further issues with the stablecoin.

Significantly, Justin Sun broadcasted the occurrence, during which he alleged uncovering of a significant international financial scam that implicated conventional financial bodies and Web3 systems based in Hong Kong.

Significantly, Sun expressed his concerns about Hong Kong’s trust laws, arguing that these loopholes facilitated the reported fraudulent activities.

He pointed out that this circumstance underscores a significant threat to the credibility of our financial structure, an issue that urgently needs resolution. Frankly, I was astonished by the magnitude of deception masterminded by numerous authorized brokers and facilitators.

A Serious Threat To Financial Integrity

He deemed the situation a significant risk to financial stability and advised postponing dealings with Hong Kong trust companies at present. Sun advocated for prompt action by regulators to safeguard the city’s prestigious financial reputation. Johnny Ng, a Hong Kong legislator and Web3 proponent, echoed Sun’s worries, pointing out instances of similar fraud cases and emphasizing the need for more stringent regulations.

Justin Sun recently underscored the significance of upholding Hong Kong’s financial standing and safeguarding user assets in a recent post. He also voiced his faith in the local administration’s ability to handle this situation and take steps to minimize future instances of fraud.

I am deeply grateful for the support from Mr. Wu, as this issue pertains to the reputation of Hong Kong Financial Center and the safety of user assets. This is a major industry and city matter, and we are confident in Hong Kong’s regulatory bodies and law enforcement agencies. We believe that this case will have a favorable outcome, and we hope that incidents like these will not occur again in Hong Kong’s future.

— H.E. Justin Sun (@justinsuntron) April 3, 2025

FDT Strikes Back

After Justin Sun’s press conference, First Digital Trust (FDT) countered with their own event to address the accusations. FDT’s CEO, Vincent Chok, unequivocally refuted any wrongdoing. He stated that Sun had failed to present substantial evidence to substantiate his claims. Chok clarified that FDT had adhered to its fiduciary responsibilities, acted in the best interests of its customers, and complied with instructions from Sun’s team, which were approved by Techteryx directors.

In addition, he pointed out that FDT undergoes routine examinations by independent organizations. Yet, he acknowledged his lack of knowledge regarding the familial ties between Aria CFF and Aria DMCC, the entities overseeing TrueUSD’s reserves.

Chok pointed out that they’re making efforts to retrieve the money, but these delays are stemming from KYC (Know Your Customer) and AML (Anti-Money Laundering) complications linked to Techteryx’s final proprietor. However, he denied Sun’s assertion that FDT doesn’t handle FDUSD withdrawals, instead verifying that the token remains financially sound. Moreover, FDT has also announced intentions to file a lawsuit against Sun and previously presented on-chain data demonstrating that redemptions are still being processed.

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2025-04-03 15:26