Policy, Justin Sun, Tron, TrueUSD, First Digital Trust Sun said at a press conference that the current authorized tips embrace systemic loopholes.
HONG KONG—It was a battle of stablecoin issuers Thursday afternoon in Hong Kong, with Justin Sun, the founding father of the Tron blockchain, and First Digital Trust (FDT), a Hong Kong-based fiduciary, holding press conferences over allegations of fund misappropriation involving Techteryx’s TrueUSD reserves.
Sun doubled down on claims that TrueUSD’s reserves had been “misappropriated by a few bad actors,” leading to him needing to quietly bail out the stablecoin.
Sun pointed a finger the Hong Kong regulatory framework surrounding trusts, arguing on the press conference that loopholes and free tips allowed the alleged misappropriation to occur.
“This situation highlights a serious challenge to the integrity of the financial system that must be addressed,” he said. “I found it hard to believe the scale of fraud orchestrated by a long list of licensed intermediaries.”
Sun even said that in the mean time, Hong Kong perception corporations should be averted completely, and urged regulators to take decisive movement to safeguard city’s worldwide financial reputation.
For that case, Sun might have an ally throughout the type of Hong Kong lawmaker Johnny Ng — known as city’s Web3 politician. He released a statement saying that he’s aware of a lot of experiences this 12 months of alleged fraud exploiting perception corporations, and acknowledged that native regulation should be improved.
First Digital Trust denies all allegations
After Sun’s press conference, First Digital Trust held its private event on X, with CEO Vincent Chok saying Sun had however to provide “one solid piece of evidence” to once more up his claims.
FDT adopted its fiduciary duties, acted in purchasers’ biggest pursuits, complied with instructions from Sun and his nominees, which had been signed off by Techteryx directors, and well-known that the company is subject to third-party audits, Chok said.
Chok, nonetheless, acknowledged he was beforehand unaware of the familial connection between Aria CFF and Aria DMCC — the funds the place TUSD’s reserves are held up.
In a complaint to the Department of Justice, Techteryx well-known that Aria CFF, the fund it said is permitted to hold TrueUSD’s reserves is managed by Matthew Brittain. Aria DMCC, which Techteryx said is unauthorized, is managed by his accomplice, Cecilia Brittain.
Chok said FDT is working to recuperate funds, nonetheless know-your-customer (KYC) and anti-money laundering (AML) factors involving the ultimate phrase helpful proprietor of Techteryx are apparently holding points up.
He moreover rejected Sun’s claims in a post on X that First Digital Trust is unable to fulfill redemption obligations of its FDUSD stablecoin. The token stays to be very rather a lot solvent, Chok said.
FDT said it plans to pursue legal action over Sun’s claims.
Earlier, the company posted examples of on-chain info exhibiting redemptions going by way of.
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