Justin Sun Advocates for Hong Kong Trust Law Reforms Amid TUSD Controversy
In Hong Kong, a conflict emerged between Justin Sun, founder of the Tron blockchain, and First Digital Trust (FDT) regarding allegations of fund misappropriation tied to Techteryx's TrueUSD reserves.
- Sun accused "bad actors" of misappropriating TrueUSD's reserves, necessitating a bailout.
- He criticized the Hong Kong regulatory framework for trust companies, stating it allowed fraudulent activities.
- Sun urged regulators to act to protect Hong Kong's financial reputation.
- Hong Kong lawmaker Johnny Ng supported Sun's call for improved regulations, citing multiple fraud reports involving trust companies.
First Digital Trust's Response
- FDT denied all allegations, claiming Sun has not provided evidence for his accusations.
- CEO Vincent Chok stated FDT followed fiduciary duties and complied with instructions from Sun and Techteryx directors.
- Chok acknowledged a lack of awareness about familial ties affecting the funds holding TUSD's reserves.
- FDT is addressing KYC and AML issues impeding fund recovery efforts.
- Chok rejected claims that FDT cannot fulfill redemption obligations for its FDUSD stablecoin, asserting its solvency.
- FDT plans legal action against Sun over these allegations.
- On-chain data was presented by FDT showing successful redemptions.