TRON founder Justin Sun is on a mission to uncover the alleged $500 million embezzlement by First Digital Trust (FDT), the issuer of the FDUSD stablecoin. In a recent statement, Sun announced a $50 million bounty program, representing roughly 10% of the stolen funds, to encourage insiders and industry players with relevant information to come forward. This development comes after Sun met with Hong Kong lawmaker Johnny Wu to discuss the issue.
Sun emphasized the importance of protecting the integrity of the web3 ecosystem and defending Hong Kong’s position as a trusted global financial center. He has submitted documents to local authorities and urged for immediate regulatory scrutiny on FDT. Sun highlighted what he described as severe irregularities within FDT, alleging that the firm is functionally insolvent but still operating under the guise of a public trust.
The ongoing controversy between Sun and FDT has had a visible impact on the FDUSD stablecoin. The stablecoin experienced significant price volatility following Sun’s claims but has since stabilized. However, investor confidence appears to be shaken, with FDUSD’s market capitalization dropping from $2.59 billion to around $2.2 billion within 48 hours. FDT has acknowledged processing some redemptions in response to growing market uncertainty.
Despite the allegations, FDT has vowed to defend its business and reputation from what it calls a misleading narrative. Hong Kong authorities have pledged to take swift action if Sun’s fraud allegations against FDT are proven valid. Sun’s actions are aimed at not only recovering the stolen funds but also at shedding light on the flaws in how trust entities operate within the intersection of traditional finance and blockchain platforms. A dedicated portal, web3bounty.io, will track the investigation and reward process.
