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Justin Sun Calls for Hong Kong Trust Reforms After $456M TUSD Fund Scandal
In a shocking turn of events, Tron founder Justin Sun has called for urgent reforms to Hong Kong’s trust regulations in the aftermath of the recent $456 million TUSD fund scandal. The crisis unfolded when TrueUSD (TUSD) issuer Techteryx faced a liquidity crisis due to illiquid investments, prompting an emergency funding by Sun himself.
Despite not being directly involved with TUSD, Sun stepped in to provide critical financial support during the crisis. However, his actions have sparked controversy and a heated debate between Tron’s founder and First Digital Trust (FDT).
During a press conference, Sun alleged that there were significant loopholes in Hong Kong’s trust regulations that enabled the fraud. He emphasized the importance of maintaining the integrity of the city’s financial system, emphasizing the need for swift reforms to prevent similar incidents in the future.
“I found it hard to believe the scale of fraud orchestrated by a long list of licensed intermediaries,” Sun stated. “This situation highlights a serious challenge to the integrity of the financial system that must be addressed.”
In response, FDT CEO Vincent Chok refuted Sun’s allegations, stating that his company had followed all necessary fiduciary duties and adhered to approved instructions from Techteryx directors. He also revealed that FDT is regularly audited by third-party firms.
The controversy has sparked calls for urgent reforms within the Hong Kong trust sector, with many questioning the effectiveness of current regulations.
Source: https://coinpedia.org/news/justin-sun-calls-for-hong-kong-trust-reforms-after-456m-tusd-fund-scandal/
