Justin Sun Claims the First Digital Trust Fund with Fiat Backing of Tusd Stablecoin, Doubles Down on His Assertion
Justin Sun has announced a $50 million bounty to prove misconduct and hidden funds concerning the reserves of Tusd Stablecoin.
Justin Sun’s Allegations
The founder of TRON, Justin Sun, has made claims regarding the dishonesty in managing the reserves of Tusd Stablecoin. Sun deposited $450 million in the stable TUSD and is offering a $50 million bounty for evidence of financial misconduct.
“I officially announce the establishment of a $50 million bounty program (approximately 10% of the liquidity support I provided or the stolen TUSD reserves), aimed at restoring the TUSD reserves, which have been illegally misappropriated by First Digital Trust (FDT) and other wrongdoers,” Sun declared on X.
Bounty for Verified Information
Sun stated that he would pay verified information through reports from whistleblowers tracking fiat transactions or conducting on-chain investigations.
First Digital Trust’s Role
The first digital trust is one of the custodians of Tusd Stablecoin, which was eliminated at one point. Sun then expanded loans, risking $500 million, to save the larger contagion of the crypto ecosystem.
Techterys took over TUSD from its original creator Trust Token, as they approached risky investments that could not liquidate or withdraw their funds. This created a demand for Sun’s involvement, covering approximately $456 million in financial gaps. As a result, Tusd fell to $0.95 in February, requiring bridge loans to regain its position.
Allegations Against FDT
Meanwhile, FDT has been accused of transferring similar sums to the entity ARIA commodities DMCC, rather than the anticipated ARIA commodities financing fund. Sun claims that FDT exploited pre-existing loopholes in Hong Kong law to misappropriate funds. He raised concerns about the company, which revealed negative equity in its annual report, further supporting his claims regarding the capital inadequacy of Stablecoin issuers.
Financial Instability of FDT
The negative equity of First Digital Trust (FDT) indicates that its total liabilities exceed total assets—in other words, it is effectively financially insufficient. This is why banks are subject to stringent capital adequacy requirements under international banking regulations…
