Justin Sun Steps In to Save TrueUSD Amid $456M FDT Scandal

The post Justin Sun Steps In to Save TrueUSD Amid $456M FDT Scandal appeared first on Coinpedia Fintech News

Tron founder justin sun justin sun Justin Sun is a well-known figure in the cryptocurrency industry, entrepreneur, and former diplomat. He established the Tron blockchain DAO system and rose to prominence in the cryptocurrency space as a result of his works. He represented Grenada permanently at the WTO in Geneva as a diplomat. Quick Facts Full Name Justin Sun Birth 30-07-1990 in Xining, Qinghai, China Nationality Chinese, Grenadian Education Peking University, University of Pennsylvania Marital Status Unmarried as of 2025 Net Worth $2B estimated Additionally, Justin mentors BitTorrent, Animoca, Poloniex, and other blockchain projects. He was in the news recently due to the standoff with the US SEC charge and a meal with Warren Buffet has made headlines. Justin Sun - Career Highlights 2017: Founded TRON to revolutionize decentralized content sharing and blockchain scalability. 2018: Acquired BitTorrent to integrate decentralized file sharing into the TRON ecosystem. 2018: Launched TRON’s mainnet, offering a high-speed, scalable blockchain for digital assets. 2018: Achieved record-breaking TRX token sales, fueling mass crypto adoption globally. 2019: Forged strategic global partnerships to expand TRON's decentralized ecosystem. 2020: Advanced TRON’s role in decentralized finance (DeFi) with innovative blockchain projects. 2021: Earned media recognition in Forbes and Bloomberg as a visionary in the crypto space. 2022: Expanded TRON’s ecosystem with new DeFi, NFT, and Web3 initiatives. 2023: Pushed forward groundbreaking Web3 and NFT projects, cementing TRON's industry leadership. In November 2024, Justin Sun contributed $30 million to World Liberty Financial (WLF). It is a cryptocurrency venture backed by the Trump family. He intervened when the project seemed to be having issues raising the money it needed, putting the Trump family at risk of receiving a payoff. Awards & Achievements of Justin Sun Year Title/organization Description 2018 Forbes 30 Under 30 Asia - Forbes Recognized for exceptional achievements in blockchain innovation. 2019 Crypto Entrepreneur of the Year - Crypto Awards Honored for pioneering leadership in digital currency innovation. 2020 Blockchain Innovator Award - World Blockchain Summit Awarded for driving growth in TRON’s decentralized ecosystem. 2021 Top Blockchain CEO - Business Insider Recognized as one of the leading CEOs in the blockchain industry. 2022 Most Influential Person in Crypto - CoinMarketCap Awards Celebrated for a significant impact on global cryptocurrency trends. Useful Links To Connect with Justin Sun Platform Link X (formerly Twitter) H.E. Justin Sun (@justinsuntron) / X LinkedIn H.E. Justin Sun – HTX | LinkedIn Official Website https://justinsuntron.com Instagram https://www.instagram.com/justinsuntron EntrepreneurInvestorCrypto and Blockchain ExpertChief Executive Officer recently stepped in with emergency funding to rescue the stablecoin TrueUSD (TUSD) after its issuer, Techteryx, faced a $456 million liquidity crisis. The crisis was caused by illiquid investments, putting TrueUSD at serious risk.

Although Sun insisted he was only an advisor and not directly involved with TrueUSD, he provided crucial financial support to prevent a collapse.

Sun Accuses FDT of Fund Misuse

A heated dispute followed between Sun and First Digital Trust (FDT), a Hong Kong-based financial firm. Sun accused bad actors of mishandling Techteryx’s TrueUSD reserves, which, he claimed, forced him to intervene quietly.

Taking his allegations public, Sun live-streamed a statement in which he claimed to expose a major international financial fraud involving both traditional finance and Web3 platforms. He criticized Hong Kong’s financial regulations, arguing that loopholes had allowed the alleged fraud to occur.

A Serious Threat To Financial Integrity

Sun warned that the situation posed a major risk to financial integrity.

“This situation highlights a serious challenge to the integrity of the financial system that must be addressed,” he noted. “I found it hard to believe the scale of fraud orchestrated by a long list of licensed intermediaries.”

He urged investors to avoid Hong Kong-based trust companies for now and called on regulators to take stronger action. Hong Kong lawmaker Johnny Ng, a key supporter of Web3 development in the city, backed Sun’s concerns, pointing to other fraud cases and the need for better oversight.

非常感谢吴议员的支持，事关香港金融中心的声誉与用户资产安全，这是全行业的大事，也是香港的大事，我们对于香港的监管机构与执法机关充满信心，也相信该案件会得到圆满结果，香港未来绝不应也不会再出现类似的欺诈案件。 https://t.co/yXfbrISiQZ

— H.E. Justin Sun (@justinsuntron) April 3, 2025

FDT Pushes Back, Denies Wrongdoing

Following Sun’s accusations, FDT held its own press conference to counter his claims. CEO Vincent Chok denied any wrongdoing, stating that Sun had not provided solid evidence. He insisted that FDT had followed its fiduciary duties, acted in the best interests of its clients, and carried out transactions with Techteryx’s approval.

Chok also noted that FDT undergoes regular third-party audits. However, he admitted he was unaware of the family connection between Aria CFF and Aria DMCC, the entities holding TrueUSD’s reserves.

The Fight Over Fund Recovery

Chok addressed concerns about delays in fund recovery, explaining that issues stemmed from KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance requirements related to Techteryx’s ownership. He rejected Sun’s claim that FDT was unable to process FDUSD redemptions, confirming that the token remained solvent.

In a bold move, FDT announced plans to sue Sun and shared on-chain data showing that redemptions were still being processed.

What Happens Next?

With both sides standing their ground, the TrueUSD crisis has escalated into a high-stakes showdown between one of crypto’s most influential figures and a major financial institution. The outcome will determine whether Sun’s fraud allegations hold up – or if FDT can prove its compliance and clear its name.