Sun’s Crypto Clash: Inside the Shocking Lawsuit Against FDUSD Issuer

Tron Founder Justin Sun Takes Legal Action Against FDUSD Stablecoin Issuer

Tron’s founder, Justin Sun, has launched a legal battle against First Digital Trust (FDT), the issuer of the FDUSD stablecoin. Sun accuses FDT of misusing nearly $500 million in client funds.

On April 3, Sun met with Hong Kong lawmaker Johnny Wu to report the case. They submitted evidence to local regulators and judicial authorities. Sun believes this is a notable international financial fraud involving customary finance and web3 platforms.

During a live podcast, Sun warned that FDT is insolvent but continues to operate as a public trust. He highlighted the need to expose loopholes in the trust industry.

Johnny Wu confirmed the meeting and stated that if the allegations are true, authorities will take action. He reassured international investors about Hong Kong’s robust legal system.

Sun’s accusations initially caused FDUSD to lose its dollar peg,dropping to $0.87.Though, it has as stabilized at $0.99. FDT denies all claims, calling them a “smear campaign” and threatening legal action.

Binance, which holds moast of the FDUSD supply, confirmed the stablecoin’s 1:1 backing. Its latest attestation showed $2.05 billion in reserves as of March 1.