Hong Kong – It was a battle of stablecoin issuers Thursday afternoon in Hong Kong, with Justin Sun, founder of the Blockchain Tron, and First Digital Trust (FDT), a trustee based in Hong Kong, holding press conferences on allegations of disapproving funds involving techteryx reserves.
Sun has doubled the claims according to which Trueusd’s reserves were “diverted by some bad actors”, which led him to need to quietly bail out the stablecoin.
I will exhibit major international financial fraud involving traditional financial institutions and web 3 platforms in Hong Kong. – Live now. https://t.co/wmcpv7Sici
– Il Justin Sun 🍌 (@justinsuntron) April 3, 2025
Sun has pointed out on the regulatory framework of Hong Kong surrounding the trustees, arguing during the press conference that escapes and loose rules allowed the alleged diversion to occur.
“This situation highlights a serious challenge to the integrity of the financial system that must be addressed,” he said. “I had trouble believing the magnitude of the fraud orchestrated by a long list of approved intermediaries.”
Sun even said that for the moment, Hong Kong’s trusted companies should be avoided entirely and have urged regulators to take decisive measures to protect the global financial reputation of the city.
For this case, Sun could have an ally in the form of the Hong Kong Legislator Johnny NG – called the city’s web3 politician. He published a declaration saying that he was aware of several reports this year of alleged fraud operating the trust companies and acknowledged that local regulations must be improved.
First Digital Trust denies all allegations
After Sun’s press conference, First Digital Trust organized his own event on X, with CEO Vincent Chok saying that Sun had not yet produced “a solid element of evidence” to support his claims.
The FDT has followed its fiduciary tasks, acted in the best interests of customers, respected the instructions of Sun and its candidates, who were reported by directors of Techteryx, and noted that the company is subject to third -party audits, said Chok.
Chok, however, admitted that he was previously not aware of the family bond between Aria CFF and Aria DMCC – The funds where Tusd’s reserves are retained.
In a complaint with the Ministry of Justice, Techteryx noted that Deri SPF, the fund which, according to him, is authorized to hold the reserves of Trueusd is managed by Matthew Brittain. Aria DMCC, who, according to Techteryx, is not authorized, is controlled by her spouse, Cecilia Brittain.
Chok said the FDT strives to recover funds, but customer problems (KYC) and the fight against money laundering (AML) involving the ultimate beneficial owner of Techteryx apparently hold things.
He also rejected Sun’s statements in an article on X that the first digital confidence is not able to fulfill the bonds of redemption of his stablecoin fdusd. The token is always very solvent, said Chok.
FDT said he was planning to continue legal action on Sun’s complaints.
Earlier, the company has published examples of data on the chain showing buyouts.
