The Wild Drama Behind Justin Sun’s Accusations: $130M Gone Poof!

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So, here we are—Justin Sun, the guy who thinks he’s the crypto messiah, is throwing around accusations like candy at a parade. He claims First Digital Trust is basically bankrupt and, surprise surprise, tells everyone’s favorite crypto enthusiasts to yank their funds ASAP. Naturally, this caused quite the kerfuffle, making FDUSD go on a little adventure down to $0.87, just for fun.

Sun Decides to Play Financial Sherlock: Insolvency Edition

Our buddy Justin—who couldn’t find his way out of a paper bag without using PayPal—says First Digital Trust (FDT) is about as solvent as a leaky boat. You know what happens next? The crypto market freaks out, like a cat in a bathtub; FDUSD, another little stablecoin from the same folks, decided to depeg, just for kicks.

On the social media platform X, Sun practically begged users to “secure your assets!” He even got the authorities involved, like they have nothing better to do.

“First Digital Trust is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets.”

And of course, he’s warning everyone that Hong Kong might lose its shiny title as a global financial hub—like that was ever guaranteed! Thanks, regulators!

Sun vs. First Digital Trust: The Legal Soap Opera

Right after throwing his tantrum, we find out that Justin has had his fair share of courtroom drama before. Remember TrueUSD (TUSD)? Yeah, he jumped in there like a lifeguard at a kiddie pool when $456 million got stuck in investments nobody wanted. It’s like a financial magic trick, but without the rabbit.

According to some lawyers with very impressive names, funds meant for something called the Aria Commodity Finance Fund were mysteriously sent off to a completely different place—Dubai? What was he thinking, ordering takeout from a different menu? FDT, who was babysitting TUSD’s reserves at the time, allegedly helped this circus act.

Some plaintiffs called it misappropriation, but FDT’s CEO, Vincent Chok, says they were just following the instructions—like a good waiter who has to deal with a picky customer.

The Market Meltdown and FDT’s Snappy Comeback

Shocking news! Sun’s claims caused FDUSD to plummet 5%, erasing a whopping $130 million like it was last season’s fashion. But TUSD? Oh no, that one stayed as cool as a cucumber.

First Digital Trust responded by saying Justin is just trying to smear them— like a toddler throwing spaghetti at the wall. They insisted FDUSD is backed by U.S. Treasury bills, and they even have reports to back it up. How quaint!

Now, everyone knows Sun loves his USDD and USDD 2.0 stablecoins. But come on, this isn’t his first rodeo with stablecoin drama. Maybe he should stick to something less risky, like investing in rare comic books or something.

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2025-04-03 16:10