Tron founder Justin Sun has expressed his support for the lawsuit filed by First Digital Trust (FDT) regarding the dispute over the TrueUSD stablecoin. Sun claims that FDT unlawfully appropriated $456 million in TUSD reserves, directing them not to the designated fund but to another company in Dubai.
This is reported by Finway
Accusations and FDT’s Response
In response to these accusations, FDT denied them and labeled them as defamatory, asserting that Sun is acting in the interests of competing stablecoins. They also announced their intention to file a counterclaim, while the FDUSD stablecoin temporarily lost its peg to the dollar.
Sun accused FDT and other TUSD service providers, including TrueCoin, of orchestrating theft through forged documents and conspiracy. He characterized the company as insolvent, citing a report of net liabilities amounting to $13 million as of June 2024.
“FDT is not only insolvent but also involved in numerous crimes. Each of us must act as quickly as possible — do not wait until it is too late,” said Justin Sun.
Sun’s Statements and Proposals
FDT denies the allegations of insolvency and claims that it has always followed client instructions. Meanwhile, Sun revealed that he has taken measures to save TUSD by issuing a $500 million loan to prevent the token’s collapse. He also emphasized regulatory issues in Hong Kong and called on authorities to strengthen oversight.
Legislator Johnny Ng supported the idea of necessary changes in legislation. As part of his investigation, Sun proposed a reward of up to $50 million for whistleblowers willing to provide details regarding the alleged theft and promised to continue speaking publicly to achieve “justice and accountability.”
It is worth noting that it was previously reported that the U.S. Securities and Exchange Commission delayed its review of Justin Sun’s activities.