HONG KONG—Thursday afternoon saw a confrontation among stablecoin issuers in Hong Kong, with Justin Sun, the founder of the Tron blockchain, and First Digital Trust (FDT), a fiduciary based in the city, conducting press briefings regarding accusations of fund misuse tied to Techteryx’s TrueUSD reserves.
Sun reiterated his assertion that TrueUSD’s reserves were “misappropriated by a handful of rogue individuals,” which led to his intervention to quietly support the stablecoin.
🚨I’m airing a significant international financial fraud involving traditional financial entities and Web3 platforms in Hong Kong.—LIVE NOW. https://t.co/wmCpV7sIcI
— H.E. Justin Sun 🍌 (@justinsuntron) April 3, 2025
During the press meeting, Sun criticized the regulatory framework in Hong Kong concerning trusts, asserting that existing loopholes and lenient regulations facilitated the alleged fraud.
“This scenario underscores a critical threat to the financial system’s integrity that requires urgent attention,” he stated. “I find it hard to believe the extensive fraud scheme perpetrated by a significant number of licensed intermediaries.”
Sun went so far as to recommend that, for now, individuals should steer clear of trust companies in Hong Kong, urging authorities to implement strong measures to protect the city’s standing in the global financial arena.
In his quest for reform, Sun may have support from local lawmaker Johnny Ng, who is recognized as a promoter of Web3 within the city. He issued a statement acknowledging awareness of numerous fraud allegations exploiting trust companies this year, recognizing the need for enhanced local regulations.
First Digital Trust refutes all accusations
Following Sun’s conference, First Digital Trust held its own press event on X, with CEO Vincent Chok asserting that Sun had failed to present “any substantial evidence” to support his allegations.
FDT emphasized that it had adhered to its fiduciary responsibilities, acted in the best interests of clients, and complied with directives from Sun and his representatives, which were duly authorized by Techteryx’s directors. Chok also pointed out that the organization is subject to external audits.
Nonetheless, Chok conceded that he was previously unaware of the familial relationship between Aria CFF and Aria DMCC—the funds where TUSD’s reserves are held.
In a complaint filed with the Department of Justice, Techteryx mentioned that Aria CFF, which it claims is authorized to manage TrueUSD’s reserves, is overseen by Matthew Brittain. In contrast, Aria DMCC, deemed unauthorized by Techteryx, is managed by his spouse, Cecilia Brittain.
Chok stated that FDT is actively working to recover the funds but noted that challenges regarding know-your-customer (KYC) and anti-money laundering (AML) protocols concerning the ultimate beneficial owner of Techteryx are causing delays.
He also dismissed Sun’s claims in a post on X that First Digital Trust is unable to meet its redemption obligations for its FDUSD stablecoin. The token remains very solvent, according to Chok.
FDT plans to pursue legal action in response to Sun’s assertions. Earlier, the company shared data showing successful redemptions on the blockchain.