Justin Sun Claims $456M First Digital Trust Scandal Is ‘Worse Than FTX’

The crypto world is no stranger to controversy, but according to Tron founder Justin Sun, a new scandal could be even bigger than the FTX collapse. He’s pointing fingers at First Digital Trust (FDT), a Hong Kong-based custodian, accusing it of mishandling hundreds of millions in client funds – and he says the situation is “significantly worse” than what FTX did.

It’s a bold claim, but it doesn’t stop there.

Sun alleges unauthorized fund transfers, shady offshore dealings, and even money laundering involving FDT’s top leadership. If true, this could shake investor confidence far beyond the crypto community. What exactly happened—and why is Sun offering a $50 million bounty? Let’s break it down.

Massive Fund Misuse? Sun’s Accusations

In a post on X, Sun alleged that FDT took $456 million from TrueUSD (TUSD) custodial reserves without informing clients or getting their permission. He claims the funds were then sent to a suspicious Dubai-based company without any collateral or legal justification.

According to Sun, the Dubai company laundered the funds—and FDT’s CEO, Vincent Chok, was directly involved. That’s a serious allegation, especially given the level of trust customers placed in FDT to safeguard their assets.

If true, this would not only shake faith in the company, but also raise larger questions about the reliability of Hong Kong’s financial oversight in the crypto space.

The Fallout Begins

The scandal is already having an impact. The FDUSD stablecoin, which is tied to FDT, briefly lost its peg to the US dollar—an early sign of instability that has investors on edge.

In response, Justin Sun has offered a $50 million bounty to help track down and recover the missing money. He’s urging Hong Kong authorities to act quickly, warning that the city’s entire financial reputation could be on the line.

A Hong Kong lawmaker has acknowledged the situation and promised legal action if the accusations are proven true. What started as a crypto dispute could soon grow into a full-blown legal and political crisis.

FDT Denies Everything, Plans to Fight Back

FDT has strongly rejected all of Sun’s claims. The company says the accusations are part of a smear campaign aimed at damaging its reputation and that of the FDUSD stablecoin. FDT maintains that it is financially healthy and plans to take legal action to defend itself.

Even with the controversy swirling, FDUSD has mostly kept its value, staying above $0.99. Still, in the crypto world, trust is everything—and once shaken, it can be hard to win back.

A Big Test for Hong Kong’s Crypto Credibility

Justin Sun points out that the United States responded quickly during the FTX collapse to protect financial integrity. He believes Hong Kong needs to take similar action now to protect its growing crypto sector.

With more countries stepping in to regulate digital assets, how Hong Kong handles this case could become a turning point for its role in global crypto markets.

If Sun’s accusations turn out to be true, this could be the biggest crypto scandal since FTX—and this time, the whole world is watching.