Justin Sun Accuses First Digital Trust of Misusing $500 Million, Calls for Action from Dubai

Tron founder Justin Sun has accused First Digital Trust (FDT) of Hong Kong and the executives of this company of transferring 500 million dollars of customer funds to banks based in Dubai without authorization. In public statements, Sun named the CEO of FDT as Vincent Chok and five associates, accusing them of transferring funds through FDT and the affiliated company Legacy Trust into accounts at Mashreq Bank, Abu Dhabi Islamic Bank (ADIB), Emirates NBD, and EFG. Sun called on the Dubai authorities to freeze transactions and investigate potential financial crimes. FDT has denied the allegations, calling them "baseless" and filed a defamation lawsuit against Sun. The company claims that they operate within the legal framework and maintain the security of customer funds. Complaints contrary to the collapse of FTX Sun compared the actions of FDT to the collapse of FTX in 2022 but emphasized the differences. He noted that FTX used customer funds as collateral for loans, while FDT was accused of withdrawing money directly from accounts. "FTX invested in companies like Robinhood," Sun said. "FDT transferred money to private organizations, not for investment." He criticized FDT's CEO Chok for shirking responsibility, stating that Chok "had no regrets." Sun met with Hong Kong lawmaker Johnny Wu to promote tighter oversight of trust companies, reflecting the U.S. response to the collapse of FTX. Since then, Hong Kong regulators have intensified their scrutiny of local firms, although no charges have been made public. To assist the investigation, Sun has proposed a $50 million reward and a website outlining the alleged plan. This initiative seeks evidence to support his claims, although its effectiveness has yet to be proven. The dispute highlights the disagreement between cryptocurrency leaders and traditional financial intermediaries. FDT, a digital asset custodian, faces scrutiny as regulators in Dubai and Hong Kong assess Sun's allegations. Dubai, aiming to develop into a cryptocurrency hub, must balance innovation and compliance. Sun's allegations have not yet been addressed. The outcome depends on whether the regulatory authorities find evidence of wrongdoing or side with the defense of FDT. Currently, the case examines how jurisdictions handle financial complaints that carry high risks 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% increase over the past week. This coin is in the top 10 by market capitalization, with a valuation of approximately $23.7 billion. The 24-hour trading volume is at $466 million, reflecting strong market interest. TRON operates on a Delegated Proof of Stake (DPoS) model, allowing for high-speed transactions at low costs. Justin Sun aims to decentralize the internet by bypassing intermediaries like YouTube or Facebook. TRX has garnered attention due to its scalability, fee-less model, and the growing TRON ecosystem of dApps and tokens TRC10/TRC20. According to technical analysis, TRX has shown stable strength and has outperformed the cryptocurrency market in general recently. It has increased by over 106% compared to the same period last year, indicating sustainable growth and investor interest. However, it is still 42% lower than its all-time high, suggesting that there may be an upward move if the bullish momentum continues.

Based on the current momentum and market structure, TRX could reach $0.275–$0.285 in the next 10–14 days if the volume holds and Bitcoin remains stable. A breakthrough above $0.295 could trigger a more positive move towards $0.32.