Hong Kong Investigates Trust Companies Amidst Justin Sun’s Claims on First Digital Trust

The Hong Kong Legislative Council Web3 and Digital Assets subcommittee has launched an investigation into allegations leveled against First Digital Trust (FDT), a stablecoin issuer. This follows claims by Tron network founder Justin Sun that FDT has mismanaged a $500 million trust fund, leading to the coin’s brief de-peg. Sun accused several individuals of exploiting loopholes in Hong Kong’s trust licensing process, causing damage to the city’s reputation as a crypto hub. 500 Million Trust Fund Mismanagement Allegations Cause Depeg