5-4-2024 – Justin Sun, the visionary behind TRON, has intensified his accusations against First Digital Trust (FDT), alleging mismanagement of the reserves underpinning the TUSD stablecoin. With unwavering conviction, Sun has put forward a staggering $50 million reward for anyone who can unearth concrete proof of financial misconduct or concealed assets linked to FDT’s handling of the stablecoin’s fiat backing. “I am formally launching a $50 million bounty programme—roughly 10% of the liquidity support I injected or the misappropriated TUSD reserves—to reclaim funds unlawfully siphoned off by First Digital Trust and other culprits,” Sun declared in a spirited thread on X.
First Digital Trust (FDT), A company with negative equity means its total liabilities exceed aggregate assets — in other words, it is practically financially insolvent. That’s why, under international banking regulations, banks are subject to stringent capital adequacy… pic.twitter.com/F5P4V1lJ2E
— H.E. Justin Sun 🍌 (@justinsuntron) April 4, 2025
The roots of this saga trace back to a turbulent period when TUSD, a stablecoin designed to hold steady at $1, slipped to a precarious $0.95 in February. This unsettling dip prompted Sun to step in with a hefty $450 million infusion of stablecoins, followed by a $500 million risk-laden loan aimed at shielding the broader crypto ecosystem from a cascading collapse. His intervention came as Techteryx, the firm that inherited TUSD from its original architects at Trust Token, found itself entangled in illiquid, high-risk ventures, unable to access or offload its capital. Sun’s financial lifeline plugged a gaping $456 million deficit, stabilising TUSD and restoring its peg.
Yet, Sun’s grievances extend beyond mere market mechanics. He has pointed an accusatory finger at FDT, one of TUSD’s custodians, claiming the trust exploited lax regulations in Hong Kong to divert funds—allegedly funnelling sums equivalent to the shortfall to Aria Commodities DMCC rather than the intended Aria Commodity Finance Fund. Bolstering his case, Sun highlighted FDT’s annual reports, which lay bare a troubling state of negative equity, casting doubt on the trust’s ability to adequately capitalise the stablecoin. In response, FDT has staunchly defended its position, pinning the blame for TUSD’s woes on Techteryx while insisting it remains solvent and fully equipped to issue and redeem stablecoins. To back its stance, the trust has brandished an attestation report affirming the integrity of its reserves.
Sun’s crusade has not been confined to TUSD alone. His allegations have rippled outwards, briefly unsettling FDUSD, another stablecoin under FDT’s stewardship. FDUSD wobbled to $0.87 amid the fallout, though the trust was quick to assert its independence from TUSD, emphasising full transparency and backing. The storm subsided as FDUSD redeemed 87 million tokens without a hitch, and both stablecoins have since clawed their way back to the $1 mark. Nevertheless, Hong Kong authorities have taken note, launching a probe into all parties involved.
The saga has cast a shadow over the stablecoins’ prominence, particularly within Binance’s orbit, where TUSD and FDUSD once reigned as linchpins of its Launchpool initiatives. TUSD’s role in these campaigns has since been curtailed, sapping its trading vitality, while FDUSD’s supply has dwindled from a high of 4.3 billion tokens to 2.21 billion, its minting now largely dictated by Binance’s whims. Despite occasional alignment with Bitcoin’s 2024 surges, FDUSD remains sidelined in decentralised finance, bearing the hallmarks of a partially centralised asset.
For now, hard evidence of misappropriated FDUSD collateral remains elusive, and the token has weathered the tumult. TUSD, meanwhile, lingers on with a circulating supply exceeding 495 million, though its utility and market buzz have faded to a whisper. Sun’s own track record has not escaped scrutiny—his TRON-based USDD stablecoin famously shed 18% of its value in 2020 before fading into obscurity, fuelling whispers of opaque backing. Undeterred, he presses on, offering to reward whistleblowers or blockchain sleuths who can substantiate his claims with cold, hard data—be it through fiat trails or on-chain revelations.