Justin Sun Offers $50M Bounty in Explosive TUSD Reserve Mismanagement Probe

Justin Sun accuses First Digital Trust of mismanaging TUSD reserves and offers $50M to anyone proving misconduct.
In a dramatic twist that could reshape the stablecoin landscape, TRON founder Justin Sun has launched a $50 million bounty program, aiming to uncover concrete evidence of financial malpractice involving First Digital Trust (FDT) and the reserves backing TrueUSD (TUSD). Sun’s public allegations, posted in a charged thread on X, claim that FDT mishandled or even diverted TUSD reserves, offering a reward for any whistleblower or blockchain analyst who can validate his claims.

“I’m formally offering a $50M bounty—about 10% of the liquidity I injected or what was misappropriated,” Sun stated, pointing fingers at FDT and unspecified accomplices.

This move follows a turbulent period in February when TUSD de-pegged to $0.95, prompting Sun to deploy $450 million in stablecoins and an additional $500 million loan to restore market confidence and prevent a systemic collapse. The stablecoin’s peg was eventually restored, but Sun’s allegations escalated, targeting FDT’s alleged misuse of Hong Kong’s regulatory gaps to funnel funds into Aria Commodities DMCC—bypassing the intended Aria Commodity Finance Fund.

Sun cited troubling FDT financial statements that show negative equity, raising questions about the trust’s solvency and its capacity to secure TUSD’s integrity. FDT has strongly rejected these accusations, shifting the blame onto Techteryx, the firm that acquired TUSD, and reaffirming its commitment to transparency and solvency via published attestation reports.

🌐 Fallout Hits FDUSD and Binance

Sun’s campaign didn’t stop with TUSD. The collateral damage extended to FDUSD, another FDT-managed stablecoin, which momentarily de-pegged to $0.87 before recovering. While FDT assured full separation from TUSD and backed FDUSD with reserve attestations, the shock was enough to trigger concern across the crypto community and prompt an official probe by Hong Kong authorities.

FDUSD has since redeemed 87 million tokens smoothly, and both stablecoins have re-pegged near $1. But the reputational damage is done. TUSD’s role within Binance’s Launchpool has been slashed, and FDUSD’s circulating supply has halved from 4.3 billion to 2.21 billion, now largely governed by Binance’s internal dynamics. Despite having once mirrored Bitcoin’s surges, FDUSD remains underutilized in DeFi due to growing centralization concerns.

🧾 Sun’s History Adds Complexity

While Sun’s allegations have captured headlines, his own stablecoin ventures raise questions. His TRON-based USDD infamously lost 18% of its value in 2020, suffering a collapse that drew criticism over opaque reserves. That episode still casts a long shadow as observers question whether Sun is a reformer—or a deflector.

Still, his $50 million bounty has turned heads, incentivizing on-chain analysts and fiat trail trackers to probe deeper into FDT’s role. If hard evidence emerges, the implications could reshape both stablecoin custodianship and regulatory priorities in Asia and beyond.

⏳ Stablecoin Uncertainty Persists

Today, TUSD has a supply exceeding 495 million tokens, yet its utility has diminished, and community interest has waned. FDUSD has survived for now, but skepticism remains. The industry continues to watch the situation unfold, with one eye on regulators and the other on blockchain explorers who might just claim Sun’s unprecedented bounty.

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