Justin Sun launched a $50 million reward program against First Digital Trust which issued FDUSD stablecoin because he believes the company stole $500 million during an embezzlement scheme.
Bounty Program
Justin Sun introduced the bounty incentives which equated to approximately 10% of the allegedly stolen funds after his gathering with Johnny Wu who represents Hong Kong in the legislature. The initiative asks insiders holding relevant information about the matter to use a designated tracking portal for the investigative process.
Legal Actions
The TRON founder sent documents to Hong Kong authorities to start expedited regulatory assessment of FDT. According to Sun the company runs a collapsed balance sheet but puts on a sham performance as a true public trust entity.
Market Impact
The controversy severely harmed FDUSD by decreasing its market value from $2.59 billion to $2.2 billion which represents a $400 million loss in 48 hours. The stablecoin began with price volatility before it settled down.
Broader Implications
The case holds essential value for defending web3 integrity as Hong Kong strives to maintain its position as a world-class financial hub. The Hong Kong authorities have declared they will take immediate action in case the suspected fraud turns out to be credible.
Conclusion
The situation has driven First Digital Trust to process redemptions while assuring its business defense against what it perceives as untrue allegations.
