Justin Sun Calls for Probe Into Alleged $500M Misuse by First Digital Trust Through Dubai Banks
Dubai, UAE – May 4, 2025 — Tron founder and blockchain entrepreneur Justin Sun has escalated his ongoing dispute with First Digital Trust (FDT), alleging the Hong Kong-based digital asset custodian misused $500 million in customer funds by channeling them through several banks in Dubai.
In a post shared on X (formerly Twitter) on May 3, Sun claimed that the transferred funds were distributed across a network of regional financial institutions, including Mashreq Bank, Emirates NBD, Abu Dhabi Islamic Bank (ADIB), and EFG. According to him, these transactions were executed without customer consent or proper oversight.
Sun specifically named several individuals he alleges were responsible for facilitating the fund transfers. These include FDT’s CEO Vincent Chok and other executives such as Christian Alexander Boehnke, De Lorraine Elbouef, Yai Sukonthabhund, and Matthew and Cecilia Brittain. Sun asserted that these individuals held senior positions either within FDT or related entities, giving them the authority to access and allegedly mismanage the funds.
As Dubai continues its campaign to become a global hub for crypto innovation, the timing of these allegations carries significant weight. Sun urged the city’s regulators, banks, and government authorities to act swiftly to preserve its credibility in the digital asset sector.
“I once again urge the Dubai government, regulators, and banks to act swiftly and decisively,” Sun stated. “Dubai must not become a safe haven for fraud and money laundering. Banks must conduct internal reviews, freeze suspicious inflows immediately, and report them proactively.”
Sun also launched a $50 million bounty initiative aimed at supporting investigations, encouraging whistleblowers, and uncovering further details around the alleged misconduct. A dedicated website has also been launched to publicize findings and promote transparency.
FDT, for its part, has firmly denied all accusations and responded by filing a defamation lawsuit against Sun. In the wake of the escalating dispute, financial regulators in Hong Kong have begun reviewing the operations of trust companies like FDT, aiming to strengthen oversight and ensure consumer protection.
The controversy has already had ripple effects across the market. FDUSD, the FDT-backed stablecoin, has seen its market capitalization plummet from over $2.5 billion to approximately $1.4 billion, according to data from BeInCrypto.
While the full scope of the situation is still unfolding, the case raises critical questions about custodial accountability and the role of regulatory oversight in safeguarding digital assets in an increasingly borderless financial landscape.