TRON Justin Sun Accuses First Digital of Misusing $456M in TUSD Reserves

Justin Sun claims First Digital Trust misused $456M in TUSD reserves, prompting FDUSD instability and calls for regulatory action across crypto markets.

In a bold move shaking the stablecoin sector, Justin Sun, founder of TRON, has publicly accused First Digital Trust (FDT) of mishandling nearly half a billion dollars in client assets. According to Sun, FDT and associated entities improperly diverted $456 million in TUSD statutory reserve funds into unauthorized investments—some allegedly linked to a private Dubai-based company—without any user consent or regulatory green light.

Sun’s claims center on the lack of accountability within FDT’s operations, especially pointing to the firm’s CEO, Vincent Chok, as operating beyond legal boundaries. The accusations suggest the misuse of collateral backing the TUSD stablecoin, igniting fear within the community and drawing attention to parallels with the infamous FTX scandal.

“The mishandling of these funds not only betrays investor trust but threatens the integrity of the entire stablecoin ecosystem,” Sun declared on social media platform X.

📉 Market Response & Stablecoin Impact

The fallout has been immediate. FDUSD, a stablecoin also managed by FDT, experienced a temporary depegging from the US dollar, triggering panic among investors. Its market cap dropped sharply as trust eroded, despite a rapid redemption of 87 million tokens. This instability caused ripples across exchanges like Binance, which previously supported the coin in its Launchpool campaigns.

Adding to the uncertainty, FTX Token (FTT) saw renewed volatility, falling 3.86% in 24 hours and over 12.5% on the week, according to CoinMarketCap. Its current market cap sits at $329.54 million, reinforcing fears of wider contagion effects across speculative assets.

🏛️ Regulatory Pressure Mounts

The growing instability has caught the attention of global authorities. Hong Kong lawmaker Johnny Ng called for an immediate and thorough investigation into First Digital Trust’s operations. Meanwhile, regulatory advocates—including research from Coincu and several watchdogs—have highlighted the urgent need for stricter governance standards across the stablecoin landscape.

As Sun doubles down on transparency, his whistleblower campaign continues to offer a $50 million bounty for verifiable evidence of misuse, inviting blockchain investigators and auditors to expose the extent of the financial malpractice.

“The crypto space is evolving, but we cannot build the future on broken trust,” Sun added.

Whether these accusations prove true or not, they have already added pressure to an ecosystem still healing from the wreckage of past failures. If substantiated, the scandal may force a tectonic shift in how custodians are regulated in the era of digital finance.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)