Justin Sun, founder of Tron, has made a statement about the insolvency of First Digital Trust, causing waves of concern in the crypto community.
Allegations Against FDT
Justin Sun stated that First Digital Trust (FDT) is insolvent. This claim raises questions about the security of assets managed by FDT and impacts the entire industry.
Hong Kong Crypto Regulation under Scrutiny
Sun criticized the licensing processes in Hong Kong, considering them vulnerable and insufficient for asset protection. He called for immediate regulatory intervention.
TUSD Liquidity Crisis and Implications
FDT's issues are causing a TUSD liquidity crisis, affecting a $500 million reserve. Sun provided emergency funds to stabilize the situation, highlighting the importance of reliable crypto custodians.
The allegations against FDT underscore the need to reassess regulatory frameworks and crypto asset custody practices. This serves as a warning to all market participants.
