As the First Digital Trust saga deepens, Tron founder Justin Sun has announced plans to launch a bounty program. The outspoken founder says the bounty will seek to recover misappropriated TUSD reserves while casting blame on First Digital Trust.
Justin Sun Set To Launch $50M Bounty Program
According to a statement on X, Justin Sun is launching a bounty program to track TrueUSD (TUSD) reserves. Justin Sun’s ambitious plan will involve setting aside $50 million in rewards to trigger a coordinated recovery process for TUSD reserves.
While details of the bounty program are still sketchy, the Tron founder says insiders and whistleblowers who share relevant information leading to the recovery of funds will be rewarded. To ensure transparency, Sun has teased a real-time tracking platform for progress reports.
As an added layer of protection, Sun says every piece of information will be reviewed before the bounty is shared with whistleblowers. Sun’s $50 million bounty program is coming after Sun stepped in to stabilize TUSD with a capital injection following a jarring reserve crisis.
“I officially announce that I will set up a $50 million bounty program to recover the TUSD reserves illegally misappropriated by criminals such as First Digital Trust,” said Sun.
Sun Points An Accusing Finger At First Digital Trust
Hong Kong-based First Digital Trust is at the center of the stablecoin saga following allegations of financial impropriety. Justin Sun fired the first shots after alleging that FDT played a significant role in the liquidity crisis facing TUSD.
Court documents indicate that nearly $500 million of TUSD are frozen in illiquid investments with TUSD owner Techteryx alleging financial mismanagement. The filings claim that FDT issued illicit trade finance loans with Justin Sun alleging financial wrongdoing by the Trust. Furthermore, Sun alleges that FDT has violated regulatory norms by claiming to manage Techteryx’s portfolio “under its own legal title.”
Sun has fired further shots at FDT, claiming that the firm is insolvent and unable to fulfill fund redemptions. Following Sun’s allegations, FDT’s FDUSD lost its dollar peg before clambering its way back up.
First Digital Trust Denies Sun’s Allegations
First Digital Trust has denied Justin Sun’s claims over its role in the TUSD saga. The firm revealed that it is “completely solvent” and its FDUSD stablecoin is fully backed.
Per the statement, FDT says the TUSD matter is still in court and the firm is yet to defend itself. The Hong Kong-based company took swipes at Justin Sun for launching a smear campaign against it.
“This is a typical Justin Sun smear campaign to try to attack a competitor to his business,” said Sun.
The US is hurtling toward stablecoin legislation following the passage of the STABLE Act by the House Financial Services Committee.
The post First Digital Trust Saga: Justin Sun To Launch $50M Bounty Program To Recover TUSD Reserves appeared first on CoinGape.
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