HONG KONG - Afternoon witness to a conflict among stablecoin issuers, Justin Sun, the founder of the Tron blockchain, and First Digital Trust (FDT), a Hong Kong fiduciary, addressed allegations of misappropriated funds from Techteryx’s TrueUSD reserves in separate press conferences.

Sun firmly reiterated his claims that TrueUSD’s reserves were “misappropriated by a few bad actors,” which led him to discreetly bail out the stablecoin.

🚨I’m exposing a major international financial fraud involving traditional financial institutions and Web3 platforms in Hong Kong.—LIVE NOW. Source
— H.E. Justin Sun 🍌 (@justinsuntron) April 3, 2025

Sun criticized the Hong Kong regulatory framework regarding trusts, arguing that existing loopholes enabled the alleged misappropriation. He expressed concern for the integrity of the financial system and suggested avoiding Hong Kong trust companies until regulatory reforms are in place.

On Sun’s claims, FDT CEO Vincent Chok stated that Sun had not provided any solid evidence and contended that they adhered to fiduciary duties performed in the best interest of their clients, noting stringent audits. Chok acknowledged becoming aware of a connection between Aria CFF and Aria DMCC, where TUSD’s reserves are held.

FDT plans to pursue legal action against Sun, emphasizing that their token remains solvent and that redemptions are currently processing.