- Justin Sun alleges FDT moved $500M client funds to Dubai banks without consent, urges regulator investigation.
- Sun contrasts FDT’s direct withdrawals with FTX’s collateralized loans, stresses absence of client authorization.
Tron founder Justin Sun has accused Hong Kong’s First Digital Trust (FDT) and its executives of moving $500 million in client funds to Dubai-based banks without permission.
In public statements, Sun named FDT CEO Vincent Chok and five associates, alleging they directed money through FDT and its affiliate Legacy Trust into accounts at Mashreq Bank, Abu Dhabi Islamic Bank (ADIB), Emirates NBD, and EFG. Sun called on Dubai authorities to freeze transactions and investigate potential financial crimes.
FDT denied the claims, calling them “unfounded,” and filed a defamation lawsuit against Sun. The firm stated it operates within legal frameworks and maintains client fund security.
Claims Contrasted with FTX Collapse
Sun compared FDT’s actions to the 2022 FTX collapse but emphasized differences. He noted FTX used customer funds as loan collateral, while FDT allegedly withdrew money directly from accounts. “FTX invested in companies like Robinhood” Sun said. “FDT moved funds to private entities, not investments.” He criticized FDT CEO Chok for avoiding accountability, stating Chok showed “no remorse.”
Sun met with Hong Kong lawmaker Johnny Wu to push for stricter oversight of trust companies, mirroring U.S. responses to FTX’s failure. Hong Kong regulators have since increased reviews of local firms, though no charges are public.
To aid investigations, Sun launched a $50 million reward program and a website outlining the alleged scheme. The initiative seeks evidence to support his claims, though its effectiveness is unproven.
The dispute underscores friction between crypto leaders and traditional financial intermediaries. FDT, a custodian for digital assets, faces scrutiny as Dubai and Hong Kong regulators assess Sun’s allegations. Dubai, aiming to grow as a crypto hub, must balance innovation with compliance.
Sun’s accusations remain unresolved
Outcomes depend on whether regulators uncover proof of misconduct or side with FDT’s defense. For now, the case tests how jurisdictions address high-stakes financial claims in an industry where trust is both currency and vulnerability.
As of now, TRON (TRX) is trading at $0.2497, marking a 0.7% increase in the last 24 hours and a 2.2% gain over the past week. The coin ranks in the top 10 by market cap, with a valuation of approximately $23.7 billion. The 24-hour trading volume sits at $466 million, reflecting strong market interest.
TRON operates on a Delegated Proof of Stake (DPoS) model, allowing for high-speed, low-cost transactions.
Justin Sun, aims to decentralize the internet by bypassing middlemen like YouTube or Facebook. TRX has gained attention due to its scalability, zero-fee model, and the growing TRON ecosystem of dApps and tokens (TRC10/TRC20).
From a technical analysis standpoint, TRX has shown steady strength and has outperformed the overall crypto market recently. It is up over 106% year-over-year, which demonstrates sustained growth and investor interest. However, it’s still 42% below its all-time high, suggesting room for upward movement if bullish momentum continues.
Based on current momentum and market structure, TRX could reach $0.275–$0.285 in the next 10–14 days if volume sustains and Bitcoin remains stable. A breakout above $0.295 could trigger a more aggressive move toward $0.32.
