Sun Yuchen exposes the incident of FDT and others misappropriating nearly $500 million in custody assets, calling for regulatory intervention to standardize the industry

ChainCatcher news, TRON founder Justin Sun disclosed at a press conference that after providing financial assistance to the stablecoin TUSD under Techteryx, he discovered that financial institutions including Hong Kong trust company First Digital Trust Limited (FDT) and Legacy Trust Company Limited (Legacy Trust), as well as a private company in Dubai, illegally misappropriated $456 million of TUSD's fiat reserves.

Justin Sun stated that Vincent Chok, CEO and Director of FDT and Legacy Trust, approved the illegal transfer of public assets, harming public interests and jeopardizing Hong Kong's reputation as a global financial center. Although Justin Sun himself provided sufficient liquidity for TUSD through his own assets, safeguarding the interests of all TUSD holders, the incident exposed serious loopholes in the trust industry. He called on Hong Kong regulators to severely punish the fraudsters and reform industry standards.