- Hong Kong’s financial trust breach exposes gaps in regulatory oversight, urging reform.
- TRON’s Justin Sun prevents TUSD collapse by securing liquidity amid fraud revelations.
- Fraudulent transfer of $456M highlights need for global financial regulatory cooperation.
A massive financial scandal has rocked Hong Kong’s trust industry, as TRON founder Justin Sun exposed a complex case of fund misappropriation involving major institutions. At a press conference held on April 3, Sun revealed that nearly $456 million in client assets, meant to support the fiat reserves of TrueUSD (TUSD), had been unlawfully diverted.
This incident not only signals major trust breaches by licensed financial entities but also raises questions about regulatory gaps that threaten Hong Kong’s status as a global financial hub.
According to Sun, the fraud involved several financial institutions, including First Digital Trust Limited (FDT), Legacy Trust, and a private entity based in Dubai. The incident marks one of the most significant misuses of public funds in the crypto-finance space to date.
🚨I’m exposing a major international financial fraud involving traditional financial institutions and Web3 platforms in Hong Kong.—LIVE NOW. https://t.co/wmCpV7sIcI
— H.E. Justin Sun 🍌 (@justinsuntron) April 3, 2025
Deepening Web of Deceit
Following Techteryx’s acquisition of TUSD in December 2020, it retained TrueCoin LLC to manage operations and recommend financial partners. One of those recommendations was FDT, which managed over $500 million in reserve assets.
Additionally, TrueCoin introduced Techteryx to the Aria Commodity Finance Fund, managed from the Cayman Islands. However, beneath the surface, a scheme was brewing. Over time, these entities allegedly funneled the majority of the reserves $456 million to a Dubai-based company linked to the fund manager’s spouse. This transfer occurred through a network of unauthorized documents and false representations.
Significantly, Vincent Chok, who held executive positions at both FDT and Legacy Trust, reportedly approved the illicit transactions. This breach of fiduciary duty allowed the fraudulent movement of client assets without proper consent or transparency.
TUSD Rescued, But Questions Remain
When Techteryx noticed missed interest payments in 2023, it launched an independent investigation. The findings exposed massive gaps in custodial accountability and a lack of proper oversight.
In response, Justin Sun stepped in with personal financial support to ensure TUSD’s stability and liquidity. This action helped shield TUSD holders from severe losses and showcased Sun’s proactive stance toward consumer protection.
Moreover, in September 2024, the U.S. SEC publicly criticized TrueCoin for misleading investors and concealing financial risks, adding legal pressure to the ongoing investigations.
A Call for Global Regulatory Reform
Justin Sun emphasized the need for sweeping reforms within Hong Kong’s financial regulatory framework. Besides urging local action, he called for international collaboration to prevent such frauds from recurring.
He believes financial institutions should never exploit their licenses to engage in cross-border criminal activities. Hence, stronger laws and global cooperation are essential to hold wrongdoers accountable and protect public trust in the financial ecosystem.
