In the wake of a financial scandal involving the illegal misappropriation of $456 million in client assets that shook the cryptocurrency industry, TRON founder Sun Yuchen stood at the forefront of public opinion and responsibility. At a press conference held on April 3, 2025, he publicly revealed that the licensed Hong Kong trust company First Digital Trust Limited (FDT) and Legacy Trust Company Limited (Legacy Trust), among others, illegally transferred massive TUSD (TrueUSD) reserves to a private company through forged documents and unauthorized transfer actions. This case not only exposed the risks of the cryptocurrency financial ecosystem but also highlighted the current global lack of trust systems and digital asset regulation.
Sun Yuchen pointed out that although institutions like FDT have official financial licenses, it is precisely this type of 'licensed halo' that has become a shield for them to commit fraud in a lax regulatory environment. In this incident, the trustees were supposed to provide the most basic security for client assets but instead became the biggest source of risk. This not only harmed the stability of the TUSD stablecoin system but also shook the public's trust in the entire industry.
This is not only a financial fraud but also a failure of the system. Sun Yuchen stated that while the current cryptocurrency financial system is developing rapidly, the construction of regulatory systems is severely lagging behind. The occurrence of such events should serve as a wake-up call for the entire industry, especially for international financial centers like Hong Kong, which should take this as an opportunity to comprehensively review and strengthen the regulatory capabilities and institutional design of key areas such as trusts and custodianship.
In response, Sun Yuchen called on regulatory agencies to enhance the transparency of digital asset custody, strengthen cross-border judicial cooperation, and improve the accountability mechanisms for licensed institutions. There is no room for compromise when it comes to protecting public funds. Even 'regular troops' must be subject to equal or even stricter regulation.
It is noteworthy that after Techteryx commissioned an independent audit to investigate this case, Sun Yuchen also provided timely liquidity support for TUSD with his personal funds, ensuring that the interests of holders were not harmed. This action not only demonstrated his sense of responsibility in the face of the storm but also reflected his deep concern for the healthy development of the cryptocurrency financial industry.
As a member of the industry, I choose to expose the truth and assist TUSD to protect the public and promote the healthy development of the industry. Fraudsters must be severely punished by law,” said Sun Yuchen.
This incident is not only a significant challenge to the safety of public assets but also a storm to test the conscience of the industry and the resilience of the regulatory system. At the forefront of the issue, Sun Yuchen took responsibility proactively, not only speaking out for the public but also setting a benchmark for the entire cryptocurrency industry in crisis management. His call may be the necessary 'breakthrough move' for the industry's progress towards maturity.
