Tron founder Justin Sun has published an update on what he describes as a “$500 million scam.”
The suspicious scheme is reportedly flowing into Dubai financial institutions, centering on the web of individuals and entities linked to First Digital Trust (FDT), Legacy Trust and Aria Commodities.
The name of the sun is said to be related
In his statement, Sun praised the newly launched Web3Bounty.io platform to advance transparency in tracking large-scale fraud across the crypto ecosystem. He nominated five individuals allegedly involved:
- Christian Alexander Bourneke de Lorraine Elbowf: Truecoin’s Financial and Operations Manager, former operator of TrueUSD (TUSD).
- Vincent Chok: CEO of First Digital Trust (FDT) and Legacy Trust
- Yai Sukonthabhund: Former CEO of Crossbridge and is currently a partner at Finoport
- Matthew William Britten: Investment Manager for ARIA Commodity Finance Fund (ACFF) and DMCC
- Cecilia Teresa Brittain: Sole shareholder of ARIA Product DMCC
More than $565 million in TUSD Fiat Relerves has been misused between 2020 and 2022, according to data from Flow-ofFunds. Through FDT and Legacy Trust, it is routed through funds to accounts managed by ARIA products DMCC and ACFF, with Finoport and Crossbridge Capital dominated as investment managers.
A Dubai bank has been caught up. Sun is looking for UAE action
The funds have been poured into at least four Dubai-based banks: MashReq Bank, Adib, Emirates NBD and EFG. Sun has called on the UAE government, regulators and related banks to act quickly
“Banks need to conduct internal reviews, immediately freeze suspicious influxes and actively report them,” Sun said. “Don’t enable criminal activity.”
He added that he is confident that the UAE will take solid action and will face financial crimes in the Web3 era.
Background: TUSD Reserve Issues and Sun’s Previous Relief
In particular, the update comes after an April revelation that it quietly provided emergency liquidity to Techteryx in April. This is the current issuer of TUSD after nearly $456 million in reserves were locked in illiquid investments.
Techteryx acquired TUSD in 2020 and appointed FDT to manage its reserves. However, it is said that FDT diverted funds to the ARIA product DMCC. This used them to fraudulent investments in assets such as manufacturing plants and renewable energy projects. They were unable to meet their redemption demands when liquidity was needed.
Court documents outline allegations of fraudulent misrepresentation and misappropriation of funds, although both FDT and ARIA deny fraud.
TUSD also faces additional challenges, such as the collapse of Prime Trust and the US SEC settlement related to misleading marketing regarding reserve backing.
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