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Category: CRYPTO NEWS
The post Justin Sun’s $500M TUSD Bailout appeared on BitcoinEthereumNews.com. Justin Sun deployed $500M to stabilize the TrueUSD stablecoin. He blames regulatory loopholes in Hong Kong’s trust system. First Digital Trust denies wrongdoing and threatens legal action. Conflicting narratives emerged Thursday regarding TrueUSD (TUSD) reserves as Tron founder Justin Sun confirmed he provided the $500 million loan following alleged misuse by Hong Kong-based fiduciary First Digital Trust (FDT), while FDT vehemently denied the accusations. Both parties held separate press conferences addressing the issue. Sun Claims $500M TUSD Bailout, Blames FDT & HK Regs In a tweet, Sun stated that he absorbed the risk to protect TUSD holders. “By extending the loan, I am personally absorbing the risk for $500 million,” he wrote. He called the situation a “rug pull” by FDT and claimed his actions prevented wider market fallout. Furthermore, Sun blamed the weak oversight of local trust companies. He said the alleged fund misappropriation revealed serious flaws in the regulatory system. “This situation highlights a serious challenge to the integrity of the financial system,” he asserted, warning against using Hong Kong trust firms until regulations improve. Related: ‘Smear Campaign’: First Digital Responds Forcefully to Justin Sun’s Attacks FDT Denies Misuse, Cites Instructions from Sun’s Nominees/Techteryx In response, FDT CEO Vincent Chok denied any wrongdoing during FDT’s press event (streamed on X). He argued Sun lacked “one solid piece of evidence” for his accusations, stating FDT followed fiduciary procedures based on instructions from Sun’s nominees and Techteryx, the TUSD issuer. Chok acknowledged being unaware of a link between two fund managers who controlled related entities allegedly holding TUSD reserves. He said regulatory processes, including KYC and anti-money laundering checks, are delaying fund recovery efforts. FDT also reiterated its rejection of Sun’s separate claims that its own stablecoin, FDUSD, is insolvent, confirming redemptions are active and plans legal action against Sun’s…
2025-04-04T08:45:12+00:00
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