Tron founder Justin Sun took to X to continue accusing First Digital Trust, a Hong Kong-based crypto custodian and issuer of the FDUSD stablecoin, of orchestrating a $500 million embezzlement scheme. 

In a lengthy post on X, Sun continued his claim that FDT and its alleged co-conspirators illegally redirected nearly half a billion dollars in client funds through a network of unauthorized investments and fraudulent address changes.

Sun alleges that FDT, alongside Aria DMCC—a Dubai-based commodities company—and other firms including Finaport and TrueCoin, deceived the stablecoin issuer Techteryx into transferring $456 million to Aria DMCC under the guise of a legitimate investment. 

Instead of investing in the authorized Cayman Islands-based Aria Commodity Finance Fund, the funds were rerouted to an unrelated entity controlled by Cecilia Brittain, wife of ACFF manager Matthew Brittain.

“This is exactly the same as an address replacement attack in crypto,” Sun wrote (post was translated), comparing the scheme to classic blockchain fraud techniques where a wallet address is swapped to misdirect funds. 

He also named several individuals allegedly involved, including FDT CEO Vincent Chok and Aria’s Alex De Lorraine, who he claims received millions in undisclosed kickbacks.

To conceal the misappropriation, Sun claims the transaction was later mislabeled as a fund subscription, enabling it to appear legitimate on paper. He further alleged that at least $15.5 million of the misused funds were funneled into a Hong Kong account named “Glass Door.”

Defamation lawsuit

Earlier, FDT responded with a defamation lawsuit, accusing Sun of making false and damaging claims about its financial health. The lawsuit, filed in Hong Kong’s High Court, seeks an injunction to stop Sun from repeating the allegations and calls for retractions and damages. 

The firm’s FDUSD stablecoin briefly depegged following Sun’s initial insolvency accusations but has since returned to parity.

Despite the legal threat, Sun has doubled down, holding a press conference and calling on regulators to scrutinize Hong Kong’s trust sector. A court hearing date has not been set.