Justin Sun, the TRON founder, has raised serious allegations against First Digital Trust (FDT) in Hong Kong, claiming misconduct amounting to $500 million. He asserts that funds designated for an investment in the Cayman Islands were improperly rerouted to an unauthorized company located in Dubai.
What Are the Core Allegations?
Sun detailed that FDT transferred $456 million to Aria DMCC in Dubai, instead of directing it to the intended Cayman Islands investment fund. He likened this transfer to a tactic known as “address switching,” reminiscent of techniques used in blockchain attacks.
Justin Sun stated, “FDT redirected the $456 million allocated for investment to a completely different entity. An address difference means a completely different wallet.”
According to Sun, the confusion between two similarly named entities suggests a deliberate attempt at fraud.
Who Else Is Involved?
The allegations also implicate several individuals Sun claims were involved in the manipulation of these funds, including FDT CEO Vincent Chok and Alex De Lorraine, among others.
Sun claimed, “FDT CEO Vincent Chok oversaw at least $15.5 million in secret transfers.”
He accused them of profiting unfairly through undisclosed commissions.
Additionally, it was revealed that rather than being managed by a Cayman fund run by Aria Capital Management Ltd, the funds were allocated to Aria Commodities DMCC, which is associated with the spouse of Matthew Brittain. This further underscores the misdirection of funds.
In retaliation to Sun’s claims, FDT has initiated a defamation lawsuit in Hong Kong, arguing that his statements contained falsehoods that could harm their corporate image.
- Sun claims $500 million in misconduct against FDT.
- Funds were allegedly misdirected to unauthorized entities.
- FDT has filed a defamation lawsuit in response to the allegations.
Given the magnitude of these allegations and the ensuing legal actions, it is essential for all involved parties to remain vigilant regarding updates and developments. Stakeholders should closely monitor official communications to make well-informed decisions moving forward.
