In a recent discussion with Sing Tao Daily, prominent crypto figure Justin Sun expressed deep concern over the troubling developments surrounding Techteryx Ltd. The company, associated with the stablecoin TrueUSD (TUSD), faces a serious credibility crisis as reports emerge of over $500 million USD in trust deposits allegedly misappropriated by the CEO of First Digital Trust, Kelvin Lo, and licensed fund manager YAI SUKONTHABHUND. Sun emphasized the ramifications of a potential financial storm if TUSD’s 5 million users learn their assets cannot be redeemed, stating, “This couldn’t possibly be happening in Hong Kong.” He characterized the incident as an egregious misappropriation, urging authorities to clamp down on what he describes as a nascent fraudulent environment. Sun advocates for recognizing the significant contributions that Web 3 technologies can offer while highlighting the need for rigorous oversight in the financial sector.
Techteryx Ltd. had previously entrusted its reserves to First Digital Trust, only to discover that a significant portion of these funds was transferred to an offshore entity, Aria DMCC, without its consent. This raises critical questions about the regulatory framework and the safeguards in place to protect investors. The firm’s alarming claim that funds were channeled into a Cayman Islands fund, which failed to issue share certificates, adds another layer of complexity and concern for stakeholders. The situation serves as a stark reminder of the vulnerabilities present in the crypto landscape, necessitating immediate scrutiny and reform to ensure depositor funds are adequately protected from similar occurrences in the future.