Justin Sun Criticizes FDUSD Issuer for Asset Misuse More Severe than FTX; Urges Swift Action from Hong Kong

Justin Sun, founder of TRON, has strongly criticized the stablecoin issuer First Digital Trust (FDT) and urged swift intervention from Hong Kong financial authorities.

Previously, Justin Sun, founder of TRON (TRX), raised concerns about FDT's ability to redeem funds, noting that FDUSD experienced a temporary de-pegging incident, dropping below $1.

On the 5th, Justin Sun stated on his X (formerly Twitter), "Both the bankrupt virtual asset (cryptocurrency) exchange FTX and FDT are serious cases of user asset misuse, but FDT is 10 times more malicious in terms of severity and structure than FTX." He pointed out that FDT diverted assets for private use without notifying users or following internal approval procedures, and even after the issue was exposed, they have not acknowledged responsibility.

He continued, "Just as FTX sought a bailout just before bankruptcy, FDT also requested financial support from me immediately after the asset misuse was revealed," adding, "This time, I intervened in the rescue of TUSD in my capacity as an advisor to Techteryx."

As of now, there is no official stance from Hong Kong authorities regarding the FDT incident. Sun emphasized, "If Hong Kong wants to maintain its credibility as an international financial center, it must take swift and decisive action like the United States," adding, "Now is the time for Hong Kong regulators to demonstrate their commitment to investor protection."