Justin Sun Calls for Hong Kong Trust Law Changes Following TUSD Misappropriation Allegations
At a press conference, Sun noted that current laws contain systemic loopholes.
Dee Sam Reynolds | Editor Sheldon Rebeck Agiornato April 3, 2025, 6:40 PM Published April 3, 2025, 9:58 AM Tradotto da IA
What I know:
- Justin Sun has accused Techteryx's TrueUSD reserves of being misappropriated due to flaws in Hong Kong regulation.
- First Digital Trust denied Sun's allegations, arguing that the company had met its fiduciary duties and was subject to audits.
- Hong Kong lawmaker Johnny Ng has acknowledged the need for better local regulation in response to a slew of reports of scams.
HONG KONG — A conflict between stablecoin issuers erupted in Hong Kong on Thursday afternoon, as Justin Sun, the founder of the Tron blockchain, and First Digital Trust (FDT), a Hong Kong-based fiduciary manager, held press conferences over allegations of misappropriation of funds related to Techteryx's TrueUSD reserves.
Sun stepped up his accusations, claiming that TrueUSD reserves were “misappropriated by a few bad actors,” forcing him to quietly bail out the stablecoin.
🚨I expose a major international financial fraud involving traditional financial institutions and Web3 platforms in Hong Kong.—LIVE. https://t.co/wmCpV7sIcI
— His Excellency Justin Sun 🍌 (@justinsuntron) April 3, 2025
Sun pointed to Hong Kong's laws governing trusts, saying at a news conference that loopholes and unclear rules facilitated the alleged theft.
“This situation highlights a serious issue for the integrity of the financial system that needs to be addressed,” he said. “I found it hard to believe the scale of the fraud perpetrated by many licensed intermediaries.”
Sun even said that Hong Kong trust companies should be avoided entirely for now and called on regulators to take decisive action to protect the city's global financial reputation.
In that case, Sun may have an ally in Hong Kong lawmaker Johnny Ng, dubbed the city's Web3 politician. He issued a statement saying he was aware of multiple reports of alleged trust fraud this year and acknowledged that local regulation needed improvement.
First Digital Trust denies all allegations
Following Sun's press conference, First Digital Trust held its own event on the X platform, where CEO Vincent Chock said Sun had yet to provide “a single piece of hard evidence” to support his allegations.
According to Chock, FDT complied with its fiduciary duties, acted in the best interests of its clients, followed the instructions of Sun and his designees signed by the directors of Techteryx, and noted that the company was subject to independent audits.
However, Chalk admitted that he was previously unaware of the relationship between Aria CFF and Aria DMCC, the funds that hold TUSD reserves.
In a complaint to the Justice Department, Techteryx said Aria CFF, the fund it claims is authorized to
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