The cryptocurrency market faced disruption after Justin Sun's claims regarding First Digital's potential bankruptcy. The news led to a significant drop in the FDUSD token's price.
Justin Sun's Statements
In response to the sharp decline in FDUSD's price, Justin Sun issued a new statement expressing concerns about FDT's operations. He claims that FDT has failed to meet customer fund repayments and is effectively insolvent. Despite this, FDT continues to operate as a public trust in Hong Kong, suggesting significant legal loopholes.
Regulatory Implications for Hong Kong
Sun voiced serious concerns about Hong Kong's financial ecosystem's integrity, pointing out that the FDT case illustrates apparent loopholes in the trust industry that allow circumvention of financial and banking regulations. He urged Hong Kong's regulators and law enforcement agencies to take decisive action to address these issues and prevent further financial risks.
Further Steps and Legal Actions
In addition to raising regulatory concerns, Sun noted that the TUSD stablecoin by Techteryx is actively pursuing legal action against FDT. He expressed his determination to support Techteryx and ensure that all scammers are held accountable under the law. At the time of writing, the FDUSD price remains extremely volatile at $0.9795.
In an environment of ongoing cryptocurrency market volatility, Justin Sun advocates for enhanced regulatory measures and calls for legal actions against unscrupulous participants. This incident raises questions about cryptocurrency asset stability and the necessity for legal compliance.
