Tron's Justin Sun Blows Whistle on $500M Crypto Heist: "It's Time to Expose the Loopholes!"

Sun Meets Hong Kong Lawmaker, Submits Evidence

Hold onto your hats, crypto fans! Tron founder Justin Sun just dropped a bombshell, accusing First Digital Trust (FDT), the brains behind the FDUSD stablecoin, of pulling off a massive $500 million client fund heist. In a fiery post on X dated Apr. 3, Sun revealed he'd teamed up with Hong Kong lawmaker Johnny Wu to blow the whistle on FDT's shady dealings. They've handed over a truckload of evidence to the local watchdogs and courts, claiming FDT's been playing fast and loose with client cash.

"A Major International Financial Fraud"

Sun didn't hold back, calling this fiasco "a major international financial fraud" that's got traditional finance and web3 platforms tangled up in a web of deceit. He's on a mission to shine a light on how the trust industry's loopholes are being exploited like never before. "It's time to expose these shenanigans!" Sun declared.

Live Podcast Exposes "Serious Irregularities"

But wait, there's more! On the very same day, Sun took to the airwaves with a live podcast, pulling back the curtain on what he calls "serious irregularities" at FDT. He warned listeners that FDT's basically broke but still strutting around like it's business as usual, all under the guise of a public trust. Talk about a ticking time bomb!

Hong Kong Lawmaker Confirms Meeting, Promises Action

Johnny Wu stepped into the spotlight, confirming he'd met with Sun and the other complainants, and even brought the issue to the Legislative Council. "If these allegations hold water, you can bet the enforcement authorities will be all over it," Wu stated. He reassured international investors that Hong Kong's legal system is rock solid, saying, "Don't let one bad apple spoil the bunch."

FDUSD Stablecoin Takes a Hit, Then Stabilizes

The drama didn't stop there. Sun's accusations sent FDUSD's dollar peg into a tailspin on Apr. 2, with the stablecoin plummeting to a low of $0.87. But it's since clawed its way back, trading at $0.99 as we speak. FDT, however, is crying foul, denying Sun's claims and insisting FDUSD is still backed 1:1 by cash and U.S. Treasury bills.

FDT Fires Back, Binance Confirms Reserves

FDT isn't taking this lying down, calling Sun's accusations "false information" and a "smear campaign." They're threatening to sue to clear their name and accusing Sun of spreading lies. Meanwhile, Binance, which holds most of the FDUSD supply, stepped in to confirm the stablecoin's 1:1 backing, with their latest attestation showing a whopping $2.05 billion in reserves as of Mar. 1.