- Main event, leadership changes, market impact, financial shifts, or expert insights.
- FDUSD stablecoin briefly de-pegged post allegations.
- Debate on custodial transparency in Hong Kong’s crypto laws.
This legal confrontation highlights significant issues of transparency and trust within crypto services, potentially affecting both local and global regulatory practices.
First Digital Trust, a Hong Kong-based crypto custodian, claims that Justin Sun’s accusations of insolvency harmed its business. Sun’s comments led to a temporary de-pegging of the FDUSD stablecoin on April 3, 2025.
Justin Sun, known for his role in TRON, accused FDT of misappropriating over $450 million. These claims included alleged fund rerouting and unlicensed activities, prompting FDT to demand damages and a retraction.
The allegations led to market disruptions, with FDUSD’s de-pegging underscoring asset instability. While Bitcoin and Ethereum were unaffected, concerns grew about Hong Kong’s regulatory controls over custodial services.
Justin Sun, Founder, TRON, “FDT is ten times worse than FTX,”: Cryptoslate
A historical parallel can be drawn with the 2022 FTX collapse. However, Sun’s accusations suggest even greater misconduct, absent of structured activity. Calls for regulatory reform in Hong Kong have increased as a result.
This case may influence future financial, regulatory, and transparency practices in crypto. Past legal outcomes, such as Sun’s 2025 defamation win, also affect stakeholder perceptions. Legal experts and market analysts are closely monitoring the impact on governance tokens and stablecoins.