Tron founder Justin Sun has escalated his battle against First Digital Trust (FDT), accusing the Hong Kong-based company of fraud in the TrueUSD (TUSD) $456 million misappropriation scandal, after announcing a $50 million bounty on April 4, 2025.
Justin Sun claims that FDT misused funds by transferring TUSD reserves to Aria Commodities DMCC in Dubai (allegedly controlled by FDT CEO Vincent Chok's wife) for unauthorized high-risk investments.
Hong Kong authorities have promised to take swift action if Justin Sun's allegations are confirmed, as the city’s status as a global financial center is under close scrutiny.
FDT has denied these allegations, calling them a smear campaign, and insists that its financial situation is stable while distancing its issued FDUSD stablecoin from the controversy surrounding TUSD.
Justin Sun's legal action comes after he personally injected $456 million to stabilize TUSD, following accusations that FDT continued fraudulent activities, including siphoning off $15.5 million in commissions through a shell entity named 'Glass Door'.
The $50 million bounty, roughly 10% of the stolen funds, has garnered widespread attention from global bounty hunters and law enforcement agencies, aimed at uncovering the masterminds behind the alleged fraud.
This case highlights the long-standing challenges in the cryptocurrency space, where regulatory loopholes and decentralized systems often complicate the recovery of funds, as noted in Lexology's 2020 report on Hong Kong's cyber fraud trends.
