Tron founder Justin Sun says he is prepared to take the ongoing conflict with First Digital Trust (FDT) to court, amid a growing controversy over the alleged misappropriation of $456 million in TrueUSD (TUSD) reserves.
“I welcome any legal process that brings more facts into the open,” Sun told The Block in a written statement. “If that means taking it to court or continuing to shine a light through public disclosures, I will do both.”
The dispute centers on Sun’s claims that FDT misdirected nearly half a billion dollars in reserves meant to back the dollar-pegged stablecoin. He alleges that between 2023 and 2024, the funds were routed to Dubai-based Aria Commodities DMCC rather than the Cayman Islands-registered Aria CFF fund. The companies share family ties through Matthew and Cecilia Brittain, who head the respective entities.
To keep TUSD solvent, Sun said he stepped in with a $500 million loan to the issuer Techteryx, while publicly accusing FDT of being “effectively” insolvent — a charge the Hong Kong-based firm has denied.
FDT responded with its own threats of legal action, accusing Sun of launching a coordinated smear campaign and claiming he was attempting to undermine a competitor, FDUSD. After Sun called on users to withdraw their assets, FDUSD temporarily lost its peg, falling to as low as $0.91.
In his latest comments, Sun repeated accusations that FDT was not merely a middleman but part of a broader scheme involving other TUSD service providers, including TrueCoin. He accused Archblock CEO Alex De Lorraine of misleading Techteryx about the investment’s structure and legitimacy.
“These weren’t simple miscommunications or administrative errors,” Sun said. “This was an intricate operation involving forged documentation and deliberate concealment.”
While Sun didn’t provide evidence beyond existing court filings, he referred to a financial statement showing FDT held net liabilities of 100.9 million HKD as of June 30, 2024. FDT disputes the insolvency claim, stating that its assets remain redeemable and that Techteryx gave explicit approval for the fund allocations.
Screenshots shared by FDT this week show language in its custody agreement that it “will take no view on the efficacy or soundness” of any investment decision made by clients, casting itself as a neutral party.
Still, Sun claims that Hong Kong’s regulatory framework enabled the alleged abuse, pointing to a lack of meaningful oversight of trust firms. “It appears no financial regulators are taking oversight over Hong Kong trust institutions,” he said, calling for tighter controls on the movement of client funds.
In parallel to his legal campaign, Sun is offering a $50 million bounty to whistleblowers who can help recover the missing funds. “The bounty is a way to encourage insiders to come forward, provide clarity, and help recover the stolen assets,” he said.
Hong Kong lawmaker Johnny Ng echoed concerns, confirming that the government received multiple fraud reports involving trust entities and suggesting that regulatory reform is needed.
Despite the tensions, Sun said he has no regrets about backing TUSD. “My decision to come to the rescue by extending a loan didn’t come easy,” he said. “It’s the right thing to do to protect token holders and prevent a wider shock to the Web3 ecosystem.”
As legal challenges mount on both sides, Sun said he remains focused on a broader outcome: “Justice and accountability.”
Descubra mais sobre
Assine para receber nossas notícias mais recentes por e-mail.