Tron founder Justin Sun has leveled serious accusations against First Digital Trust (FDT), a Hong Kong-based financial institution, alleging severe financial misconduct. llowing concerns over its stablecoin FDUSD’s reserves, the coin dropped below its $1 peg. Following reports that TrueUSD’s reserves were stuck in illiquid assets, Sun accused FDT of being financially insolvent and urged users to secure their funds. The company denied these claims, stating it is fully solvent and its assets are safe. A recent X post by Sun shared a screenshot revealing FDT’s financial statement reveals negative equity for three consecutive years, with liabilities exceeding assets by HK$100 million in 2024. Sun alleges that FDT has misappropriated user funds and is still raising billions of dollars from the public despite this situation. He believes FDT’s existence is a mockery of the law in Hong Kong. Sun also went live to publicly share accusations, claiming he uncovered significant international financial fraud involving both traditional finance and Web3 platforms. He criticized Hong Kong’s financial regulations for allowing such fraud.