Justin Sun Calls for Hong Kong Regulatory Action After $456M Stablecoin Dispute

Justin Sun, a prominent figure in the cryptocurrency industry, recently addressed the controversy surrounding Techteryx Ltd., the company behind the stablecoin TrueUSD (TUSD). In an interview, Sun clarified that Techteryx does not operate within his industry, emphasizing that his involvement was driven by a desire to stabilize the market. He highlighted the global user base of TUSD, which stands at 5 million users, and expressed concern that any issues with the stablecoin could trigger a significant financial storm.

Sun's surprise at the events unfolded was evident. He described the situation as "shattering his worldview," questioning how a financial institution could misappropriate user assets and transfer them without authorization. He expressed disbelief that such actions could occur in Hong Kong, labeling it as outright theft of depositors' funds. Sun's comments underscored the need for regulatory authorities, the government, and the banking industry to address this vulnerability, ensuring that Hong Kong does not become a hub for financial fraud. He also stressed the importance of recognizing the potential funds that Web 3 companies can bring to the economy.

Previously, Techteryx Ltd. had accused the CEO of the Hong Kong asset custody agency First Digital Trust (FDT), Kelvin Lo, and a licensed fund manager from Singapore, YAI SUKONTHABHUND, of colluding with multiple companies to fraudulently obtain over $500 million USD in trust deposits from the plaintiff and the public. The funds, which were entrusted to FDT for custody, were later invested in a Cayman Islands fund. However, this fund did not issue any investment-related share certificates to FDT. Without Techteryx Ltd.'s knowledge, at least $456 million USD of the reserve was directly transferred to an offshore private company named Aria DMCC in Dubai as an unsecured loan. The Cayman Islands fund has refused to redeem or repay the funds to Techteryx Ltd., further complicating the situation.