Justin Sun, founder of TRON ecosystem, announced the launch of a bounty program worth $50 million aimed at recovering funds which were allegedly embezzled by First Digital Trust (FDT) and other entities.
This announcement was made today April 04, 2025 by Justin Sun on social media platform X (formerly known as Twitter), following Justin Sun’s recent accusation that FDT, along with other financial institution have siphoned over $500 million in custodial assets related to the stablecoin TUSD.
Rewards for Insiders and Whistle-blowers
According to the post, the program will be rewarding insiders or whistle-blowers who provide important information that could lead towards recovery of the misappropriate funds. With this post, the founder of Tron is encouraging people to come forward against injustice.
Dedicated Portal for Real-time Updates
The founder also announced that there would be a dedicated portal (web3bounty.io) which will be launched to manage the entire program. The main aim of this portal would be to provide real-time updates on the progress of the investigation.
Assessment of the Claims
Even though the founder of TRON ecosystem urges people to come forward if they have a staunch proof or information against FDT, he also clarified that all claims or proofs will undergo a rigorous assessment and only then the rewards will be issued and distributed. In this way, integrity of the process will be maintained.
With this bounty program, Justin Sun, is trying to protect the investors and uphold the city’s financial reputation as well.
Background of the Entire Scenario
All of this began when the Techteryx, company that owns TUSD cryptocurrency, was struggling to recover investment managed by FDT. Justin Sun stepped in to help stabilize the situation by providing funds to Techteryx. Justin Sun then raised a red-flag because TUSD (Techteryx) was not able to get a huge amount of money back from FDT.
FDT’s Financial Health Raises Concern
First Digital Trust’s financial situation has also been exposed by Justin Sun today on X. The reports posted by Sun indicate that the company has maintained a negative net worth for three consecutive years, culminating in a negative KH$100 million in net assets as of 2024.
This raises serious concerns about how financially insolvent company can continue to manage billions of dollars in public assets under the oversight of Hong Kong regulators. Justin Sun with this post also highlighted the loopholes in Hong Kong’s trust licensing and risk management processes and has urged authorities to address promptly.
Justin Sun Meets with Hong Kong Legislative Council Member
Moreover, Justin Sun has also had a meeting with the Hong Kong Legislative Council member Ng Kit-Chung and has reported misconduct along with all the relevant data and proofs to the judicial and regulatory authorities of Hong Kong. Justin Sun in his post also indicated that he is confident and optimistic that the justice will be served.
Response from FDT
Amidst this drama, First Digital Trust has denied these accusation and plans to file a legal action against Justin Sun for his behaviour and for hurting the company’s reputation in the market. Even though the Trust company is denying all these charges, these allegations has led to depegging for FDUSD, which is a stablecoin that is associated with First Digital.
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