Hello everyone, I'm Xiao K! Early this morning, the crypto world exploded again! TRON founder Sun Yuchen suddenly launched an attack on social media, directly accusing the issuer of stablecoin FDUSD, First Digital Trust (FDT), of being insolvent and suspected of defrauding $456 million, causing FDUSD to plummet over 20%! This turmoil not only caused retail investors to panic sell, but also involved the urgent intervention of Binance and the controversy of large holders arbitraging. What exactly happened? What are the secrets behind it? Today, we will conduct an in-depth review of this 'stablecoin heist'!

1. The outbreak of the incident: Sun Yuchen's late-night accusations, FDUSD instantly unpegs.
1. Sun Yuchen's 'industry event' hype becomes reality.
On April 2nd at 23:00, Sun Yuchen posted on platform X accusing FDT of insolvency, claiming it could not fulfill its obligation to redeem customer funds, and urged users to take immediate action to protect their assets. The 'revelation of international financial fraud' he had previously warned about finally unveiled—pointing directly at FDT misappropriating funds and suspected money laundering!

2. Market panic: FDUSD plummets to $0.76.
As the news broke, FDUSD quickly unpegged. On the Binance platform, FDUSD/USDT fell to a minimum of 0.87, while FDUSD/USDC even touched 0.76, with a decline of over 24%! As an important entry ticket for Binance Launchpool, the plummet of FDUSD triggered a chain reaction of sell-offs, with users lamenting '10% evaporated overnight.'

3. Arbitrageurs enter the market, Wintermute becomes the biggest winner.
In panic, market maker Wintermute operates against the trend, withdrawing 31.36 million FDUSD from Binance within 20 minutes, with total holdings reaching 65.46 million (accounting for 2.5% of circulation), becoming the largest holder aside from Binance. The market speculates that it is arbitraging by buying low, harvesting retail investors' 'bloody chips'.

2. Binance urgently intervenes, but why are users not convinced?
1. He Yi debunks rumors: The dispute stems from TUSD and is unrelated to FDUSD.
Binance co-founder He Yi quickly responded, stating that Sun Yuchen's accusations are actually related to a dispute over another stablecoin, TUSD, and emphasized that FDUSD reserves are sufficient, supporting a 1:1 redemption. Subsequently, Binance officially released an audit report showing that FDUSD reserve assets exceed $2.05 billion (with 84.5% in U.S. Treasury bonds).

2. Users angrily criticize: Delayed announcements caused retail investors to panic.
Although FDUSD rebounded to $0.987 after Binance's statement, users questioned Binance’s 'prior notification to large holders', leading ordinary investors to panic sell at low prices. The community mocked: 'April Fool's Day has passed, but the money is gone!'

3. FDT strikes back: The accusations are outdated, reserves are sufficient.
FDT CEO Vincent Chok denied insolvency during a live broadcast, claiming that Sun Yuchen's accusations stem from an old case regarding TUSD in 2023, and presented reserve proof from February (where cash and U.S. bonds account for over 90%). He emphasized that customer funds are independently held and compliance is recognized by Hong Kong regulators.

3. The root of the dispute: The mystery of $456 million misappropriation.
1. Were TUSD reserves illegally transferred?
According to court documents, during FDT's management of TUSD, $456 million in reserves was misappropriated from the Aria Fund in the Cayman Islands to Aria DMCC in Dubai (controlled by a couple), suspected of money laundering and fraud. After Techteryx (the operator of TUSD) failed to redeem in 2023, Sun Yuchen provided an emergency loan to fill the gap.

2. FDT executives accused of self-enrichment.
The indictment shows that FDT CEO Vincent Chok is accused of transferring $15.5 million in commissions to the 'Glass Door' entity and issuing $15 million in illegal loans to Aria DMCC. Sun Yuchen claims he has over $500 million in FDT that cannot be withdrawn, calling for Hong Kong regulators to intervene.

3. Legal battles and regulatory loopholes.
The case exposes regulatory risks in Hong Kong's trust industry: FDT, as a licensed entity, is suspected of misappropriating funds under the guise of compliance. Sun Yuchen has initiated lawsuits in Hong Kong and the U.S. with Techteryx, but FDT insists it's 'only executing client instructions and bears no investment risk.'

4. Impact of the incident: A renewed crisis of trust in stablecoins.
1. Retail investors become the biggest victims.
Although FDUSD re-pegged to $0.98, early sellers have suffered huge losses. The community reflects: 'The shadow of the UST collapse has not dissipated, who can we trust when stablecoins depeg?'

2. Binance's credibility is questioned.
Users accuse Binance of slow crisis response and insufficient transparency of information. He Yi responded that 'announcements require a process', but the market expects an independent third-party audit more.

3. Dual challenges for regulation and the industry.
The incident highlights the weak links in asset custody and information disclosure by stablecoin issuers. Sun Yuchen calls for global regulatory intervention, while FDT's 'licensed compliance' banner will be scrutinized and could become a barometer for the industry.

This turmoil is far from over! The legal battle between Sun Yuchen and FDT may last for years, and whether FDUSD can fully restore its peg remains to be seen. Xiao K reminds everyone: Stablecoins may be 'stable', but the background of the issuer and the transparency of reserves are key!

What do you think of this incident? Feel free to discuss in the comments! Remember to like and follow, see you next time!