TRON Founder Justin Sun Updated Criticism of First Digital Trust (FDT), Claiming the Company Transferred $500 Million of Customer Funds to Dubai Banks.
In a post on X on May 3rd, Sun claimed these funds were distributed across multiple institutions including Mashreq Bank, Emirates NBD, Abu Dhabi Islamic Bank (ADIB), and EFG.
TRON Founder Calls for Investigation of Dubai FDT
Sun also named several individuals he believes authorized or facilitated this fund transfer. These include Christian Alexander Boehncke, De Lorraine Elbuef, FDT CEO Vincent Chok, Yai Sukontabunnd, Matthew William Britten, and Cecilia Teresa Britten.
According to him, these individuals held executive positions in institutions related to FDT and allegedly had the authority and access to improperly use customer assets.
Sun's criticism came as Dubai establishes itself as a global cryptocurrency innovation hub. Over the past few years, authorities have introduced several pro-cryptocurrency initiatives to attract international attention and investment.
In this context, Sun urged local banks, regulatory bodies, and government agencies to investigate the transfers and immediately freeze suspicious inflows.
He also demanded internal audits, disclosure of anomalies, and active cooperation from relevant institutions.
"Once again, I urge Dubai's government, regulatory bodies, and banks to take swift and decisive action. Dubai must not become a safe haven for fraud and money laundering. Banks must conduct internal reviews, immediately freeze suspicious inflows, and actively report them. Do not become accomplices to criminal activities." โ Justin Sun's statement.
These accusations are further escalating the conflict between Sun and the Hong Kong-based trustees.
Last month, he compared FDT's misconduct to the FTX scandal, stating it was "much worse" because there was no loan collateral structure or user approval.
Sun launched a $50 million bounty program to support the investigation, reveal additional details, and punish those responsible. He also created a dedicated website to expose this alleged fraud.
FDT has denied all accusations and filed a defamation lawsuit against Sun. Meanwhile, Hong Kong regulatory authorities have begun reviewing the conduct of local trust companies in light of these allegations.
Since the dispute began, FDT's FDUSD stablecoin's market capitalization has plummeted. According to BeInCrypto data, the stablecoin's market cap decreased from over $2.5 billion to approximately $1.4 billion at the time of reporting.
