Tron Founder Justin Sun Alleges $500M Fraud by FDT, Hit with Defamation Lawsuit

By / / Crypto News, Daily News
Tron Founder Justin Sun Alleges $500M Fraud by FDT, Hit with Defamation Lawsuit
Table Of Contents
  1. Sun Alleges $456M Was Misappropriated
  2. FDT Executives Accused of Personal Gains
  3. $50M Bounty Launched to Recover TUSD Funds
  4. FDT Hits Back with Legal Action
  5. TRON Price Reacts to Allegations
  6. Grayscale Considers TRON Despite the Chaos
  7. Final Thoughts

TRON Founder Justin Sun Makes Explosive Allegations Against FDT – Legal Clash Unfolds

In a stunning turn of events, Justin Sun, the founder of TRON, has accused Hong Kong-based financial firm First Digital Trust (FDT) of orchestrating a $500 million fraud. His claims have now triggered a fierce legal response, with FDT filing a defamation lawsuit against him.

Sun Alleges $456M Was Misappropriated

Taking to social media platform X, Sun alleged9 that FDT redirected $456 million—initially meant for an investment fund in the Cayman Islands—into an unrelated Dubai-based entity. He likened the incident to a blockchain “address replacement attack”, where funds are rerouted through a deceptive change in destination.

According to Sun, the funds were intended for the Aria Commodity Finance Fund (ACFF) but were instead transferred to Aria Commodities DMCC, a similarly named but unrelated company based in Dubai. He claims this switch was executed without authorization, drawing parallels between crypto wallet spoofing and the opaque mechanisms of traditional finance.

FDT Executives Accused of Personal Gains

Sun went further to name key individuals he believes were involved in the alleged scheme. This includes:

  • Vincent Chok – CEO of FDT
  • Alex De Lorraine
  • Yai Sukonthabhund

He alleges these executives pocketed millions through secret kickbacks, citing that Chok allegedly funneled over $15.5 million into a Hong Kong-based private account named Glass Door. Furthermore, he suggested the Dubai entity was controlled by the wife of fund manager Matthew Brittain, implying a deeper web of personal benefit.

$50M Bounty Launched to Recover TUSD Funds

In response to the fallout, Sun injected emergency capital to stabilize TrueUSD (TUSD), whose reserves were allegedly affected by the missing funds. He also launched a $50 million bounty program to uncover the truth, recover lost assets, and incentivize whistleblowers.

Sun is urging Hong Kong regulators to investigate the broader trust industry and increase transparency across financial custodians.

FDT Hits Back with Legal Action

FDT didn’t stay silent. The firm filed a defamation lawsuit in Hong Kong’s High Court, demanding a public apology, financial compensation, and a formal injunction to stop Sun from repeating his claims.

The company maintains its financial health is intact, stressing that their stablecoin FDUSD is fully backed 1:1 with U.S. Treasury Bills, and all operations are compliant with regulations.

TRON Price Reacts to Allegations

The TRON (TRX) token saw immediate market impact following Sun’s public accusations. TRX dipped from $0.2407 to $0.2348, reflecting how quickly investor sentiment can shift in response to high-profile disputes.

Still, Sun remains resolute. In a press conference, he reaffirmed his accusations and called for sweeping reforms in financial oversight.

Grayscale Considers TRON Despite the Chaos

Amid the controversy, there was a glimmer of optimism for TRON holders. Grayscale, a leading crypto investment firm, added TRON to its shortlist of assets under consideration for future investment products. This move could potentially usher in institutional interest, even as the FDT case continues to unfold.

Final Thoughts

The clash between Justin Sun and First Digital Trust is not just another crypto drama—it’s a high-stakes battle that could shape the trust industry’s reputation. Whether Sun’s accusations hold up in court or FDT wins its defamation claim, the outcome will undoubtedly have lasting consequences for the broader blockchain ecosystem.

Stay tuned as the legal firestorm unfolds and regulators weigh in.

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