• Justinsan has deployed $500 million to stabilize the TrueUSD Stablecoin.
• He denies the regulatory loopholes in Hong Kong’s belief system.
• The primary digital belief denies fraud and threatens authorized motion.

Battle tales emerged on Thursday relating to TrueUSD (TUSD) reserves as Tron founder Justin Solar confirmed he offered $500 million in loans following misuse by Hong Kong-based trustee First Digital Belief (FDT).

The events held separate press conferences addressing the problem.

Solar claims guilty $500 million TUSD aid, FDT & HK REGS

In a tweet, Solar mentioned it has absorbed the dangers of defending TUSD holders. “By extending my mortgage, I personally soak up $500 million in threat.” he wrote. He known as the state of affairs “ragpur” by the FDT and claimed that his actions had hampered the fallout within the wider market.

Moreover, Solar has denounced weak surveillance of native belief firms. He mentioned alleged misappropriation of the fund revealed a severe flaw within the regulatory regime.

“This case underscores the intense challenges to the integrity of the monetary system,” he warned and warned in opposition to utilizing Hong Kong belief firms till laws enhance.

Associated: “Smear Marketing campaign”: First Digital responds powerfully to Justinsan’s assaults

FDT denies misuse and quotes directions from Solar’s candidate/Techteryx

In response, FDT CEO Vincent Chok denied any fraud throughout FDT’s press occasion (streamed on X). He argued that Solar lacked “one strong proof” in opposition to his accusations, and mentioned FDT adopted the contracting process based mostly on directions from Solar’s candidate and Tusd writer Techteryx.

Chock admitted he was unaware of the hyperlink between the 2 fund managers who managed the related entities that allegedly held TUSD reserves. He mentioned regulatory processes, together with KYC and cash anti-money laundering checks, are slowing down fund restoration efforts.

FDT has additionally repeatedly rejected Solar’s particular person declare that its personal stubcoin, FDUSD, is bancrupt, confirming that redemption is aggressive and planning authorized motion in opposition to Solar’s official assertion.

HK Lawmaker weighs. FDT reconfirms FDUSD solvency

In the meantime, Hong Kong MP Ng Equipment-Chung reiterated his issues about belief laws. He confirmed he would obtain experiences of comparable fraud instances and mentioned reforms had been wanted.

Associated: FDT Insolvency Buzz, FDUSD Depeg Stoke’s Worry: Hong Kong Surveillance Questions

Specifically, Solar mentioned it plans to work with NG to advertise higher laws and Web3 insurance policies in Hong Kong. The case highlights rising concern over the function of belief firms in crypto finance.