Sun Yunlong Exposes Nearly $500 Million in Custodial Assets Embezzlement Including FDT, Calls for Strengthened Regulation to Protect Public Interests
On April 3, TRON founder Justin Sun revealed a major financial fraud case involving the misappropriation of TUSD (TrueUSD) fiat reserve funds during a press conference. In this case, various financial institutions, including Hong Kong licensed trust companies First Digital Trust Limited (FDT) and Legacy Trust Company Limited (Legacy Trust), as well as a private company in Dubai, colluded to embezzle $456 million of customer funds. Sun noted that while providing funding support to all parties involved in TUSD, his attention was drawn to how this case not only endangered public interests but also exposed serious flaws in the trust industry, undermining Hong Kong's reputation as a global financial center.
According to information disclosed during the press conference, in December 2020, Techteryx acquired TUSD from TrueCoin LLC (TrueCoin). TrueCoin was retained and entrusted to select financial service providers and coordinate international operations, with the arrangement set to terminate in July 2023. During this period, TrueCoin, in its capacity as a trustee, selected FDT as the custodian of the TUSD fiat reserve assets, managing over $500 million in reserve funds. Additionally, TrueCoin recommended the Aria Commodity Finance Fund (the "Cayman Fund") to Techteryx as a primary investment.
In subsequent transactions, TrueCoin was suspected of colluding with FDT and other institutions to transfer $456 million of TUSD fiat reserve funds to a private company in Dubai fully owned by the wife of a former investment manager of the aforementioned Cayman Fund through false documents and unauthorized transfers. FDT and Legacy Trust CEO and Director Vincent Chok directly approved these illicit transactions, grossly violating their fiduciary duties.
In 2023, due to FDT's failure to pay interest on certain investments made on behalf of Techteryx, Techteryx appointed an independent professional team to conduct a comprehensive investigation into FDT. The team discovered a substantial misappropriation of client funds under custody and sought support from Justin Sun. Sun personally provided support to Techteryx with his own funds to ensure that TUSD had sufficient liquidity, safeguarding the interests of all TUSD holders.
It is reported that as early as September 2024, the U.S. Securities and Exchange Commission (SEC) issued a public statement accusing TrueCoin of participating in fraudulent activities involving TUSD. These fraudulent activities occurred after Techteryx's acquisition and while TrueCoin still operated as the operator of TUSD. The SEC believes that "TrueCoin profited from misrepresentations of investment security while exposing investors to significant undisclosed risks."
Justin Sun stated, "These assets are public funds. To protect the public interest and maintain Hong Kong's reputation as an international financial center, I have decided to provide liquidity support. I am shocked by the scale of this fraud and feel a deep sense of responsibility."
Justin Sun called on Hong Kong regulators to take decisive actions to plug the loopholes and prevent further losses of public funds. His decision to publicly address this issue and expose the fraudulent behavior is aimed at seeing all scammers held accountable to the fullest extent of the law. "They should never again have the opportunity to defraud the public in Hong Kong or elsewhere under the guise of licensed institutions."
In this case, the fact that licensed institutions like FDT could freely misappropriate public funds indicates that there are still regulatory deficiencies. The intricate trans-jurisdictional crime network highlights the necessity of global collaboration to combat financial fraud. Justin Sun stated, "As a member of the industry, I choose to reveal the truth and assist TUSD to protect the public and promote the healthy development of the industry. Fraudsters must face severe legal consequences."
You may also like

Ripple Joins Elite Crypto and Banking Players at High-Stakes White House Summit
Key Takeaways Ripple secured a critical position at a White House summit focusing on stablecoin regulation. The meeting…

Crypto Apocalypse Coming: Renowned Expert Foresees Catastrophic End for Cryptocurrency
Key Takeaways Nouriel Roubini, known as “Dr. Doom,” anticipates a “catastrophic end” for the cryptocurrency sector. Even with…

Moonbirds NFTs Are Soaring Again: Unveiling the Recent Price Surge
Key Takeaways Moonbirds NFTs, once a joke in the NFT world, are making a staggering comeback thanks to…

Trump Says Crypto Reserve Will Include XRP, Solana, Cardano—And ‘Obviously’ Bitcoin and Ethereum
Key Takeaways President Trump announced a strategic U.S. crypto reserve to include digital assets such as XRP, Solana,…

‘Big Short’ Investor Burry: Bitcoin Has Not Succeeded as a Safe Haven
Key Takeaways Michael Burry warns that Bitcoin has not proven to be the secure asset many expected it…

SEC Chair Paul Atkins to Make History as First Sitting Chair to Speak at the Bitcoin Conference in Las Vegas
Key Takeaways Paul Atkins, SEC Chairman, is set to become the first sitting SEC Chair to speak at…

Vitalik’s Vision: Redefining Ethereum’s Layer 2 Landscape
Key Takeaways Ethereum creator Vitalik Buterin calls for a new role for Ethereum’s Layer 2 solutions (L2s) as…

Jeffrey Epstein’s Investment in Blockstream and the Unfolding Controversy
Key Takeaways Jeffrey Epstein was involved as an investor in the early seed round of the Bitcoin technology…

Cardano (ADA) Price Analysis for February 3: Can It Stabilize Above $0.30?
Key Takeaways: The current trading value of Cardano (ADA) is $0.2999, reflecting a 1% drop over the past…

SHIB Price Analysis for February 3: A Week to Watch for Shiba Inu Investors
Key Takeaways The SHIB price is currently rising after finding local support at $0.00000677. A potential upward move…

Crypto Market Review: Shiba Inu’s (SHIB) 1,000,000,000,000 Bull Market Trigger, Bitcoin (BTC) Crash Might Stop Here, Is Dogecoin (DOGE) in Mini-Bull Market?
Key Takeaways Shiba Inu (SHIB) shows signs of a potential recovery with a significant green candle, hinting at…

The Top Airdrop Opportunities of January 2026
Key Takeaways: Discover the top five airdrop opportunities available in January 2026, each representing promising tokenless protocols. Uniswap…

BitMine’s $6 Billion Ethereum Losses: Strategic Planning or Market Gaffe?
Key Takeaways BitMine Immersion Technologies, holding the largest Ethereum treasury, reports over $6 billion in unrealized losses. The…

Strategy Stock ($MSTR) Reaches 52-Week Low As Bitcoin Slips Below $84,000
Key Takeaways Strategy ($MSTR) shares hit a session low of $140.25, dropping significantly amid Bitcoin’s price decline. Bitcoin…

Jeffrey Epstein’s Unusual Bitcoin Connections
Key Takeaways: Jeffrey Epstein’s substantial involvement in the cryptocurrency industry, particularly Bitcoin, was revealed through document releases. Epstein…

Cardano Price Prediction as the Planned CME’s ADA Futures Launch Nears
Key Takeaways Cardano’s current price stability reflects structural balance in the market, maintaining a firm foothold below $0.30.…

Ondo Price Prediction Amid MetaMask’s Integration of Over 200 Tokenized U.S. Stocks
Key Takeaways Ondo (ONDO) token exhibits positive movement, rebounding from a bearish trend and maintaining levels above $0.27.…

Why Bitcoin’s Defense of $76,000 Matters for MicroStrategy’s Earnings Narrative
Key Takeaways MicroStrategy’s Q4 2025 earnings are heavily influenced by Bitcoin’s price performance, especially maintaining the $76,000 level.…
Ripple Joins Elite Crypto and Banking Players at High-Stakes White House Summit
Key Takeaways Ripple secured a critical position at a White House summit focusing on stablecoin regulation. The meeting…
Crypto Apocalypse Coming: Renowned Expert Foresees Catastrophic End for Cryptocurrency
Key Takeaways Nouriel Roubini, known as “Dr. Doom,” anticipates a “catastrophic end” for the cryptocurrency sector. Even with…
Moonbirds NFTs Are Soaring Again: Unveiling the Recent Price Surge
Key Takeaways Moonbirds NFTs, once a joke in the NFT world, are making a staggering comeback thanks to…
Trump Says Crypto Reserve Will Include XRP, Solana, Cardano—And ‘Obviously’ Bitcoin and Ethereum
Key Takeaways President Trump announced a strategic U.S. crypto reserve to include digital assets such as XRP, Solana,…
‘Big Short’ Investor Burry: Bitcoin Has Not Succeeded as a Safe Haven
Key Takeaways Michael Burry warns that Bitcoin has not proven to be the secure asset many expected it…
SEC Chair Paul Atkins to Make History as First Sitting Chair to Speak at the Bitcoin Conference in Las Vegas
Key Takeaways Paul Atkins, SEC Chairman, is set to become the first sitting SEC Chair to speak at…