Justin Sun Exposes $100M Scandal: Is Hong Kong’s Finance a Joke?

So, Tron’s Justin Sun has decided to play Sherlock Holmes 🕵️‍♂️ and has accused First Digital Trust (FDT), a Hong Kong-based financial institution, of some *serious* financial shenanigans. Cue the dramatic music. 🎶

FDUSD, a stablecoin from First Digital, recently decided to take a nosedive below its $1 peg because, apparently, no one trusts its reserves anymore. It dropped to $0.87 against USDT and $0.76 against USDC before *kind of* stabilizing around $0.98–$0.96. Talk about a rollercoaster ride. 🎢

Sun Says FDT Is Broke (But They Disagree, Obviously)

FDUSD’s price tanked after rumors that TrueUSD’s reserves were stuck in illiquid assets. Justin Sun, ever the drama king, claimed that First Digital Trust (FDT), which manages these reserves, is *totally* insolvent and told everyone to run for the hills with their money. FDT, of course, denied everything, called it a “smear campaign,” and threatened legal action. Because nothing says “we’re innocent” like a lawsuit. 🙄

In his latest X post, Justin Sun shared a screenshot of FDT’s financial statement, revealing that the company has been in the red for three years. Negative equity? Check. Liabilities exceeding assets? Check. Ending 2024 with a negative HK$100 million? Double check. Oh, and let’s not forget the alleged misappropriation of user assets. Because why not add a little spice to the scandal? 🌶️

Is This a Legal Joke or What?

Sun didn’t stop there. He pointed out that despite all this, FDT is still raising billions in public funds. “FDT’s very existence at this very moment is a mockery of the rule of law in Hong Kong,” he said. Ouch. 🎤

He even went live on a stream to accuse FDT of being part of a major international financial fraud involving both traditional finance and Web3 platforms. He also criticized Hong Kong’s financial regulations, saying loopholes allowed this mess to happen. Because, you know, nothing screams “trustworthy” like a financial system with more holes than Swiss cheese. 🧀

Sun also questioned how Hong Kong regulators and law enforcement could let this situation continue, suggesting it undermines the rule of law in the region. Because apparently, the rule of law in Hong Kong is now a punchline. 🎭

2025-04-04 14:07

Sun Says FDT Is Broke (But They Disagree, Obviously)

Is This a Legal Joke or What?

Read More