Justin Sun BLASTS FDT in Shocking Press Conference, Warns Hong Kong’s Reputation at Stake

• Justin Sun alleges FDT misappropriated user funds and violated fiduciary duties, prompting calls for regulatory action in Hong Kong.
• First Digital Trust rejects Sun’s claims as “reckless and unfounded,” accusing him of reputational damage and threatening legal action.
• Court filings reveal FDT allegedly diverted $456 million in TUSD reserves to illiquid investments, sparking the Sun-FDT dispute.

TRON founder Justin Sun and Hong Kong-based custodian First Digital Trust (FDT) are currently at loggerheads, with both firing serious allegations. The dispute has now taken a new turn after Sun just held a press conference calling out FDT for its failure to adhere to ethical and legal standards in its administration.

Justin Sun BLASTS FDT in Shocking Press Conference, Warns Hong Kong's Reputation at Stake 3

It all started when Sun urged users to immediately secure their assets, declaring that FDT is insolvent and unable to fulfill redemptions. As per earlier court filings, Sun had bailed out TUSD after $456 million became illiquid. TUSD’s owner, Techteryx, entrusted First Digital Trust (FDT) to manage the stablecoin’s reserves, according to the filings.

FDT was tasked to direct $456 million to agreed-upon entities. Court documents accuse FDT of illegally diverting the funds from their intended destination to illiquid investments, tied to assets like manufacturing plants, mining operations, and port infrastructure, making them difficult to quickly redeem. FDT’s CEO, Vincent Chok, has refuted the charges, saying his firm acted on Techteryx’s instructions. The rift spilled out in the open after Sun intervened with the emergency funding.

FDT Reacts to Justin Sun’s Press Conference, Rejects “Reckless” Allegations

He called out Hong Kong regulators and law enforcement to act swiftly to prevent further damage, adding that HK’s reputation as a global financial hub is at risk due to weak trust licensing and risk management oversight.

After days of back and forth, Sun escalated the feud by holding a press meet where he accused FDT of fund misappropriation of users, illegally transferring custodial assets to a private company without approval, failure to uphold fiduciary responsibilities as a trust company, and conspiring with other unnamed parties to carry out these illegal transactions.

In response to Justin Sun’s media conference today, First Digital deemed the accusations as reckless and unfounded. Earlier, they also denied the claims, accusing Sun of trying to damage their reputation, and are considering legal actions against him. FDUSD briefly lost its dollar-peg before hovering close to $0.9.