Tron founder Justin Sun has initiated a authorized course of in opposition to First Digital Belief, the issuer behind the FDUSD stablecoin, accusing it of embezzling almost $500 million in consumer funds.
On a Apr. 3 put up in X, Sun mentioned he had met with Hong Kong lawmaker Johnny Wu to report the case and submitted associated supplies to native regulators and judicial authorities. The alleged embezzlement facilities on FDT’s dealing with of consumer belongings, which Sun claims have been misappropriated.
Sun described the incident as “a major international financial fraud involving traditional financial institutions and web3 platforms,” and mentioned it was time to show how “loopholes in the trust industry” are being exploited.
On the identical day, Sun hosted a dwell podcast to additional expose what he referred to as critical irregularities, warning that FDT was successfully bancrupt and nonetheless working beneath the duvet of a public belief.
Johnny Wu publicly addressed the case, confirming that he met with the complainants and raised the problem within the Legislative Council. “If the allegations are true, enforcement authorities will definitely take action,” he mentioned. Ng emphasised Hong Kong’s sturdy authorized system, stating, “International investors should not worry about a single incident.”
Sun’s accusations, which started on Apr. 2, had briefly brought about First Digital USD (FDUSD) to lose its greenback peg and drop as little as $0.87. The stablecoin has since stabilized, buying and selling at $0.99 as at press time. In response to Sun, FDT denied all claims and mentioned FDUSD stays absolutely backed 1:1 by money and U.S. Treasury payments.
FDT dismissed Sun’s claims as “false information” and a “smear campaign.” The corporate warned it could take authorized motion to defend its title and accused Sun of spreading false data. Binance, which holds a lot of the FDUSD provide, confirmed the stablecoin’s 1:1 backing in an replace. Its newest attestation confirmed $2.05 billion in reserves as of Mar. 1.
