Justin Sun’s $500M Bailout of TUSD Exposes Weaknesses in Hong Kong Trust Regulation
- Justin Sun deployed $500M to stabilize the TrueUSD stablecoin.
- He blames regulatory loopholes in Hong Kong’s trust system.
- First Digital Trust denies wrongdoing and threatens legal action.
Conflicting narratives emerged Thursday regarding TrueUSD (TUSD) reserves as Tron founder Justin Sun confirmed he provided the $500 million loan following alleged misuse by Hong Kong-based fiduciary First Digital Trust (FDT), while FDT vehemently denied the accusations.
Both parties held separate press conferences addressing the issue.
Sun Claims $500M TUSD Bailout, Blames FDT & HK Regs
In a tweet, Sun stated that he absorbed the risk to protect TUSD holders. “By extending the loan, I am personally absorbing the risk for $500 million,” he wrote. He called the situation a “rug pull” by FDT and claimed his actions prevented wider market fallout.
Furthermore, Sun blamed the weak oversight of local trust companies. He said the alleged fund misappropriation revealed serious flaws in the regulatory system.
“This situation highlights a serious challenge to the integrity of the financial system,” he asserted, warning against using Hong Kong trust firms until…
The post Justin Sun’s $500M Bailout of TUSD Exposes Weaknesses in Hong Kong Trust Regulation appeared first on Coin Edition.
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Justin Sun’s $500M Bailout of TUSD Exposes Weaknesses in Hong Kong Trust Regulation
- Justin Sun deployed $500M to stabilize the TrueUSD stablecoin.
- He blames regulatory loopholes in Hong Kong’s trust system.
- First Digital Trust denies wrongdoing and threatens legal action.
Conflicting narratives emerged Thursday regarding TrueUSD (TUSD) reserves as Tron founder Justin Sun confirmed he provided the $500 million loan following alleged misuse by Hong Kong-based fiduciary First Digital Trust (FDT), while FDT vehemently denied the accusations.
Both parties held separate press conferences addressing the issue.
Sun Claims $500M TUSD Bailout, Blames FDT & HK Regs
In a tweet, Sun stated that he absorbed the risk to protect TUSD holders. “By extending the loan, I am personally absorbing the risk for $500 million,” he wrote. He called the situation a “rug pull” by FDT and claimed his actions prevented wider market fallout.
Furthermore, Sun blamed the weak oversight of local trust companies. He said the alleged fund misappropriation revealed serious flaws in the regulatory system.
“This situation highlights a serious challenge to the integrity of the financial system,” he asserted, warning against using Hong Kong trust firms until…
The post Justin Sun’s $500M Bailout of TUSD Exposes Weaknesses in Hong Kong Trust Regulation appeared first on Coin Edition.
Read More