Justin Sun targets First Digital Trust with $50 million bounty over alleged embezzlement

TRON laminitis Justin Sun has announced a $50 cardinal bounty programme to exposure the alleged $500 cardinal embezzlement by First Digital Trust (FDT), the issuer of the FDUSD stablecoin.

In an April 4 statement connected societal media, Sun revealed that the bounty represents astir 10% of the stolen funds. The improvement comes little than 24 hours aft Sun met with Hong Kong lawmaker Johnny Wu.

He urged insiders and manufacture players with applicable accusation to travel forward, promising afloat transparency done a dedicated portal, web3bounty.io, that volition way the probe and reward process.

He stated:

“All claims volition beryllium rigorously assessed earlier rewards are delivered.”

According to Sun, the ngo goes beyond recovering funds. He said the lawsuit is astir protecting the integrity of the web3 ecosystem and defending Hong Kong’s presumption arsenic a trusted planetary fiscal center.

On April 3, the TRON laminitis submitted documents to section authorities and pressed for contiguous regulatory scrutiny connected FDT. Sun claimed that the concern exposes heavy flaws successful however spot entities run wrong the intersection of accepted concern and blockchain platforms.

To rise further awareness, Sun hosted a property league detailing what helium said were terrible irregularities wrong FDT. He besides alleged that the steadfast was functionally insolvent but inactive operating nether the guise of a nationalist trust.

Hong Kong authorities person since pledged to instrumentality swift enactment if Sun’s fraud allegations against FDT beryllium valid.

FDUSD suffers

The ongoing contention betwixt Sun and First Digital Trust is already having a disposable interaction connected the FDUSD stablecoin.

On April 2, the stablecoin experienced important terms volatility pursuing Sun’s claims but has since stabilized.

However, capitalist assurance appears shaken. Data from CryptoSlate shows that FDUSD’s marketplace capitalization dropped from $2.59 cardinal connected April 2 to astir $2.2 billion, reflecting a astir $400 cardinal diminution wrong 48 hours.

FDT has since acknowledged processing immoderate redemptions, attributing the outflows to increasing marketplace uncertainty pursuing the allegations.

The squad has besides promised to support its concern and estimation from what it called a misleading narrative.

The station Justin Sun targets First Digital Trust with $50 cardinal bounty implicit alleged embezzlement appeared archetypal connected CryptoSlate.