TRON founder Justin Sun is intensifying his accusations against First Digital Trust (FDT), the issuer of the FDUSD stablecoin, who he claims embezzled $500 million of its clients’ funds.
In an April 5 post on X, Sun compared FDT to the now-defunct FTX exchange, claiming the FDT case is “ten times worse.” FTX filed for bankruptcy in November 2022 after a bank run revealed an $8 billion shortfall in its assets.
Sun argued that while FTX misused user funds, the exchange at least maintained an internal system that portrayed the activity as pledged loans.
He explained that FTX used assets like FTT, SRM, and MAPS tokens as collateral in transactions that, on the surface, had some structure. In contrast, Sun claims First Digital Trust outright stole funds without user consent or any internal pledge mechanism.
“FDT simply siphoned off $456m from TUSD’s custodial funds without client authorization or knowledge, and booked as loans to a dubious third party Dubai company without any collaterals,” Sun claimed.
The Tron founder further asserted that the now-convicted FTX founder Sam Bankman-Fried (SBF) indeed misused funds. However, Sun noted much of that capital went into investments in reputable firms such as Robinhood and AI company Anthropic.
On the other hand, Sun alleged that FDT diverted user assets into private entities for personal gain without any meaningful investment.
Sun also took aim at FDT CEO Vincent Chok Zhuo, criticizing his apparent indifference following the exposure of the alleged misconduct.
According to him, Chok has shown no intention of taking responsibility. This contrasts with SBF, who took steps to recover user assets and cooperated with authorities.
“Vincent Chok has acted deceptively and maliciously, pretending nothing happened when exposed,” Sun stated.
Considering this development, the TRON founder urged Hong Kong authorities to take swift action. He called for a response similar to that of US regulators during the FTX collapse.
Sun emphasized that Hong Kong’s reputation as a global financial hub is at risk and called for immediate enforcement to prevent further damage.
“Hong Kong must act like its US counterparts—swiftly, decisively, and effectively. We cannot allow the fraudsters continue its pyramid scheme against the public,” the crypto entrepreneur concluded.
To support investigations, Sun has launched a $50 million bounty program aimed at exposing the alleged misconduct. He also met with Hong Kong lawmaker Johnny Wu to discuss potential regulatory action.
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