Justin Sun claims FDUSD insolvent, rides to TUSD’s rescue
The post Justin Sun claims FDUSD insolvent, rides to TUSD’s rescue appeared on BitcoinEthereumNews.com.
Homepage > News > Business > Justin Sun claims FDUSD insolvent, rides to TUSD’s rescue Tron founder Justin Sun’s attack on the solvency of the entity supporting the FDUSD stablecoin is drawing questions back to his own relationship with FDUSD rival TUSD. On March 28, papers filed in the High Court of the Hong Kong Special Administrative Region’s Court of First Instance by Techteryx Ltd accused Vincent Chok and Yai Sukonthabhund of attempting to defraud Techteryx to the tune of over $500 million. The Singapore-based Techteryx controls TrueUSD, the issuer of TUSD. Chok is CEO of the Hong Kong-based First Digital Trust (FDT), custodian of the fiat reserves backing both TUSD and FDUSD. Sukonthabhund is a partner and former CEO of Crossbridge Capital Asia and is currently a partner at Zurich-based asset manager Finaport. Techteryx says it deposited hundreds of millions of dollars with FDT, only to discover that the funds weren’t invested in the responsible manner Techteryx expected. Worse, the suit accuses the defendants of having “siphoned off sums in excess of US$500 million from [TUSD’s] reserves, in a spider-web of investment fraud.” Techteryx, which acquired TrueUSD in December 2020, alleges that TrueUSD’s previous owners engaged Hong Kong-based Legacy Trust to oversee its reserves. Legacy then engaged Crossbridge as its investment manager. When Techteryx acquired TrueUSD, its former owners advised Techteryx to appoint FDT to replace Legacy Trust and to appoint Finaport to replace Crossbridge. Techteryx agreed and struck a deal with FDT, after which FDT struck a deal with Finaport to manage the TUSD reserves. FDT claimed to have invested $565 million in a Cayman Islands mutual fund. But Techteryx alleges that most of this cash went to a Dubai-based fund with a similar name that Techteryx claims “is not a genuine fund.” Techteryx further alleges that $456 million of the reserves were “not even paid…
Filed under: News - @ April 4, 2025 11:21 am