Tron founder Justin Sun has initiated legal action against First Digital Trust, accusing the company of embezzling nearly $500 million in client funds.
Justin Sun's Allegations
In a post on X on April 3, Sun reported having met with Hong Kong lawmaker Johnny Wu regarding the case. He submitted related materials to local regulators and judicial authorities. Sun claims that First Digital Trust misappropriated client assets.
> "I met with Hong Kong Legislative Council member Johnny Wu and reported the embezzlement case involving nearly $500 million of client reserve funds by First Digital Trust (FDT). We have submitted relevant materials to the regulatory and judicial authorities. We are fully confident…" CITE_W_A
Response from First Digital Trust
First Digital Trust denied all claims, labeling Sun's statements as "false information" and a "smear campaign." The company maintained that FDUSD remains fully backed 1:1 by cash and U.S. Treasury bills. Binance, holding most of the FDUSD reserves, confirmed the peg.
Comment from Hong Kong Legislation
Johnny Wu publicly addressed the case, stating that if the allegations are confirmed, law enforcement would take action. He emphasized that "International investors should not worry about a single incident."
> "根據傳媒報道，今天有Web3企業申訴表示在港懷疑被信託公司非法轉移5億美元資產，我也在立法會回應了事件，並會見當時人申訴..." CITE_NA
The case between Justin Sun and First Digital Trust raises important questions regarding the trustworthiness of financial institutions and regulatory compliance in the Web3 space. As the situation evolves, the actions taken by both parties could influence the market.
