TRON founder Justin Sun has escalated his claims against First Digital Trust (FDT), accusing the FDUSD stablecoin issuer of siphoning off $456 million from client funds held under custody.
In a detailed statement posted on X on 5 April, Sun likened the situation to the infamous collapse of FTX, describing FDT’s alleged misconduct as “ten times worse.”
According to Sun, FDT moved $456 million from TUSD’s custodial reserves without client consent.
He alleged the funds were classified as loans to a Dubai-based third-party company, but with no collateral or prior disclosure to clients.
He wrote,
“FDT simply siphoned off $456m from TUSD’s custodial funds without client authorisation or knowledge, and booked as loans to a dubious third-party Dubai company without any collaterals.”
This, Sun argued, sets FDT apart from FTX.
While both are accused of misusing user assets, he claimed FTX at least maintained internal structures to justify its actions, using assets such as FTT, SRM, and MAPS tokens as pledged collateral.
FDT, by contrast, allegedly conducted outright theft.
Sun also drew a distinction between the leadership of the two firms.
While Sam Bankman-Fried, founder of FTX, is now serving time following conviction, Sun suggested that Bankman-Fried had made efforts to work with authorities and recover assets.
In contrast, he accused FDT CEO Vincent Chok Zhuo of acting with impunity.
Sun stated,
“Vincent Chok has acted deceptively and maliciously, pretending nothing happened when exposed.”
He further claimed Chok had transferred funds to a fraudulent Dubai entity, which then laundered the money for private enrichment.
Sun warned that Hong Kong’s standing as a global financial hub could be at risk if authorities fail to respond promptly.
He urged regulators to act decisively, referencing the swift action taken by US authorities during the FTX crisis.
He wrote,
“Hong Kong must act like its US counterparts—swiftly, decisively, and effectively. We cannot allow the fraudsters continue its pyramid scheme against the public.”
To support investigations, Sun has launched a $50 million bounty to uncover the truth behind the alleged misappropriation.
Source: Justin Sun’s X
He also met with Hong Kong lawmaker Johnny Wu, who reportedly expressed interest in taking action if the claims prove to be accurate.
First Digital Trust has publicly rejected Sun’s accusations, calling them malicious and damaging to its reputation and the integrity of the FDUSD stablecoin.
The company insisted that it is not insolvent and threatened legal consequences in response to Sun’s public campaign.
Despite the turmoil, FDUSD has maintained a price above $0.99 since 2 April.
Sun’s accusations have intensified scrutiny around the handling of stablecoin reserves and the role of custodial entities, especially as the crypto sector works to rebuild trust following the FTX fallout.
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