Justin Sun, an advisor to Tron founder and TrueUSD (TUSD) issuer Techteryx, reiterated the allegations he first made in April, this time with stronger language, at a press conference in Hong Kong.
Sun accused FDUSD issuer First Digital Trust (FDT) and its CEO Vincent Chok of using loopholes in the city’s trust company regulations to move hundreds of millions of dollars of TUSD reserves abroad without permission.
At the meeting on Thursday, Sun alleged that Hong Kong-based FDT not only diverted stablecoin reserves to offshore entities but also created fake transaction documents to conceal these transfers.
Techteryx acquired TUSD in 2020 and assigned FDT the task of managing the token’s reserves. However, Sun revealed earlier this year that there was a large liquidity gap in TUSD reserves, alleging that Hong Kong regulations allowed FDT to unauthorizedly divert nearly half a billion dollars into illiquid offshore vehicles.
According to court filings, Techteryx claims the reserves were not transferred to the Aria CFF fund, but to another Aria-affiliated entity called Aria Commodities DMCC. These assets are tied up in long-term, irreversible financing for commodity and infrastructure projects, making them ineligible for stablecoin reserves. Aria denies these accusations.
The parties agree that the funds were diverted to Aria-linked entities. At the heart of the dispute is whether FDT was authorized to conduct these transactions and whether it knew the diverted assets would be tied up in long-term, illiquid trade finance projects.
Since the initial press conference, the Dubai Digital Economy Court has imposed a global freeze on assets linked to the alleged irregular transactions. The court stated that this decision was not a finding of wrongdoing, but merely a serious legal dispute.
The decision blocks the assets while awaiting the expected Hong Kong judiciary to resolve the case and also increases pressure on Hong Kong regulators. The case presents a critical test of how trust companies are regulated as the city prepares for its upcoming stablecoin licensing regime.
FDT maintains that it executed all transactions under Techteryx’s direct instructions, that no funds were misappropriated, and that it did not control Aria. The company cites Aria’s AML/KYC concerns regarding Techteryx’s ownership as the reason for the difficulty in recovering the assets.
Sun, however, claims that the instruction documents FDT relied on were forged. “We have evidence that they fabricated all the transaction documents,” he said.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/stablecoin-wars-have-begun-again-billionaire-tron-founder-justin-sun-makes-a-statement/
