Justin Sun Welcomes Legal Action in TUSD Reserve Dispute

Justin Sun, the founder of Tron, has embraced the possibility of legal action in the ongoing conflict with First Digital Trust (FDT) over the management of TrueUSD’s (TUSD) reserves.

He expressed his willingness to pursue any legal avenues that could shed light on the situation, emphasizing that he would continue to bring attention to the issue, either through court or public disclosures.

The core of the dispute centers around Sun’s accusation that FDT mishandled $456 million of TUSD reserves. According to Sun, the funds were improperly diverted to a Dubai-based firm, Aria Commodities DMCC, instead of being directed to the intended Cayman Islands fund, Aria CFF. The transfer of these funds has raised alarms about potential mismanagement and the involvement of various parties, including key individuals with connections to both firms.

To mitigate the risk of TUSD’s collapse, Sun extended a $500 million loan to Techteryx, the company behind TUSD. He also publicly accused FDT of being unable to redeem client funds due to insolvency, a claim FDT vehemently denied. FDT countered by defending its solvency, arguing that it still has sufficient resources to meet user withdrawals and dismissing Sun’s allegations as damaging and unfounded.

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Furthermore, Sun contends that FDT’s role in the alleged misappropriation goes beyond that of a mere intermediary. He claims that multiple entities, including FDT and TrueCoin, worked together to orchestrate a “rug pull” on the TUSD reserves, with some involved parties misleading Techteryx about the legitimacy of their investments. Sun’s accusations also extend to the involvement of Alex De Lorraine, a key figure at TrueCoin, who Sun alleges made false claims about the investment fund.

Amid the dispute, Sun is offering a $50 million bounty to any insider or whistleblower who can provide evidence about the alleged financial misconduct, aiming to recover the misappropriated assets. He remains focused on ensuring justice and transparency, calling for stricter regulation of financial institutions in Hong Kong to prevent similar incidents.

As the situation develops, Sun’s actions continue to emphasize accountability and transparency, with the ultimate goal of protecting investors and the integrity of the Web3 space.

Alexander Stefanov