Hong Kong -legislator Johnny NG has sworn that the authorities will quickly act as fraud accusations against First Digital Trust (FDT), the emitting of the FDUSD Stablecoin, are confirmed.
In a post of 3 April on X insured NG investors that the crypto-controlling framework of the city is robust and committed to investor protection despite the recent controversy controversy.
According to him:
“Hong Kong has a legal basis and a healthy environment for protecting international investors and the web3 industry. I do not worry about not worrying about a single incident and to feel insured in continuing to invest and develop in Hong Kong with international investors and technical practitioners.”
His comments follow on accusations by Tron founder Justin Sun, who claims with FDT who has wrongly killed client funds, which is concerned about the gaps for legal gaps in the trust company of the city.
NG acknowledged that this year received several complaints with suspected fraud linked to confidence practices. Given this, he noticed a clear need to revise and strengthen the rules for such companies.
He said:
“My office and the anti-fraud alliance have indeed received more than one case this year with suspected fraud using the characteristics of trust companies. I believe it is necessary to discuss how the regulatory framework for relevant trust companies can be improved in the future to prevent criminals from exploiting meshes for fraud companies.”
Justin Sun vs. First Digital Trust
On April 2, Sun claimed that FDT was confronted with insolvency after they reportedly darkened almost $ 500 million in customer funds.
According to Sun, the FDT has derived the Truusd (TUSD) reserves from Techteryx by taking advantage of the insufficient regulatory supervision in Hong Kong’s crypto sector.
Sun said:
“This case shows that there seem to be clear meshes in the trust industry of Hong Kong that can be used to bypass financial and bank regulations. This not only forms risks to the public, but also threatens Hong Kong’s reputation as a worldwide financial center.”
However, FDT has pushed back firmly against the allegations.
In his answer, the company rejected Sun’s claims as false and not related to his Fdusd Stablecoin.
FDT clarified that the dispute comes from TUSD operations and accused Sun of avoiding legal roads in favor of a public smear campaign to harm its reputation.
The trust company stated:
“The unfounded accusations of Justin Sun will not distract from the own failures of Techteryx – our Stablecoin Fdusd remains fully supported and solvent.”
FDT confirmed that the legal adviser is looking for and will take steps to defend his affairs and reputation against what it called a misleading story.