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Justin Sun Claims First Digital Trust Fraud Exceeds Impact of FTX

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TRON founder Justin Sun is intensifying his accusations against First Digital Trust (FDT), the issuer of the FDUSD stablecoin, who he claims embezzled $500 million of its clients’ funds.

In an April 5 post on X, Sun compared FDT to the now-defunct FTX exchange, claiming the FDT case is “ten times worse.” FTX filed for bankruptcy in November 2022 after a bank run revealed an $8 billion shortfall in its assets.

Justin Sun Compares First Digital Trust to FTX

Sun argued that while FTX misused user funds, the exchange at least maintained an internal system that portrayed the activity as pledged loans.

He explained that FTX used assets like FTT, SRM, and MAPS tokens as collateral in transactions that, on the surface, had some structure. In contrast, Sun claims First Digital Trust outright stole funds without user consent or any internal pledge mechanism.

“FDT simply siphoned off $456m from TUSD’s custodial funds without client authorization or knowledge, and booked as loans to a dubious third party Dubai company without any collaterals,” Sun claimed.

The Tron founder further asserted that the now-convicted FTX founder Sam Bankman-Fried (SBF) indeed misused funds. However, Sun noted much of that capital went into investments in reputable firms such as Robinhood and AI company Anthropic.

On the other hand, Sun alleged that FDT diverted user assets into private entities for personal gain without any meaningful investment.

Sun also took aim at FDT CEO Vincent Chok Zhuo, criticizing his apparent indifference following the exposure of the alleged misconduct.

According to him, Chok has shown no intention of taking responsibility. This contrasts with SBF, who took steps to recover user assets and cooperated with authorities.

“Vincent Chok has acted deceptively and maliciously, pretending nothing happened when exposed,” Sun stated.

Considering this development, the TRON founder urged Hong Kong authorities to take swift action. He called for a response similar to that of US regulators during the FTX collapse.

Sun emphasized that Hong Kong’s reputation as a global financial hub is at risk and called for immediate enforcement to prevent further damage.

“Hong Kong must act like its US counterparts—swiftly, decisively, and effectively. We cannot allow the fraudsters continue its pyramid scheme against the public,” the crypto entrepreneur concluded.

To support investigations, Sun has launched a $50 million bounty program aimed at exposing the alleged misconduct. He also met with Hong Kong lawmaker Johnny Wu to discuss potential regulatory action.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Is $0.415 the Key to Further Gains?

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Layer-1 (L1) coin KAVA has emerged as the day’s top performer with a modest 0.10% gain over the past 24 hours. The coin remains range-bound despite this lead, signaling a relative balance between buying and selling pressure.

Still, the sentiment around KAVA is quietly bullish. With technical and on-chain indicators pointing to a surging positive bias, the altcoin might be poised for a breakout above its narrow range.  

Buyers Dominate as KAVA Teases Break Above Resistance

Since the beginning of April, KAVA’s price has oscillated within a range. The 98th largest crypto by market capitalization has faced resistance at $0.415 and has found support at $0.392.

KAVA Price Analysis.
KAVA Price Analysis. Source: TradingView

With the gradual resurgence in bullish bias toward the altcoin, KAVA could see a break above the $0.415 resistance level in the near term.

Its positive Balance of Power (BoP) on the daily chart confirms this outlook.  At press time, this momentum indicator is at 0.20. 

KAVA BoP
KAVA BoP. Source: TradingView

The BoP indicator measures the strength of buyers versus sellers in the market, helping to identify momentum shifts. When its value is negative, sellers are dominating the market over buyers.

Converesly, a positive BoP like this suggests that buying activity outweighs selling pressure. This reflects KAVA’s growing demand and potential for its price to appreciate further.

Moreover, the coin’s positive funding rate highlights the bullish sentiment among KAVA’s futures traders. As of this writing, the metric stands at 0.0097%.

KAVA Funding Rate
KAVA Funding Rate. Source: Coinglass

The funding rate is a periodic payment between traders in perpetual futures contracts to keep prices aligned with the spot market. KAVA’s positive funding rate means long positions are paying short. This trend indicates that more KAVA traders are betting on its price to increase.

KAVA Approaches Breakout—Can It Flip $0.41 Into Support?

KAVA’s strengthening buying pressure could trigger a break above the resistance at $0.415. If this price level is successfully flipped into a support floor, KAVA’s uptrend will gain momentum and could reach $0.44.

KAVA Price Analysis
KAVA Price Analysis. Source: TradingView

Conversely, if profit-taking spikes, the coin could slip below support at $0.392. In this scenario, KAVA’s price could fall further to $0.38.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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XRP and Bitcoin Briefly Rallies After Rumors of 90-Day Tariff Pause

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The brief rumor of a 90-day pause from Trump’s tariffs caused the markets to rally significantly. However, the White House squashed these rumors, fueling further crashes.

This highlights a genuine desperation in the markets as traders try to regain some bullish momentum and prevent a recession.

Trump Tariff Fakeout

The threat of Trump’s tariffs is closer than ever, and it’s causing a “Black Monday” event in the crypto markets. Bitcoin dipped below $80,000, and over $1 billion was liquidated from crypto.

However, one of the President’s advisors, Kevin Hassett, suggested this morning that he might be having second thoughts:

“Would Trump consider a 90-day pause in tariffs?’ ‘I think the president is gonna decide what the president is gonna decide … even if you think there will be some negative effect from the trade side, that’s still a small share of GDP,’” Hassett said in an interview.

This news quickly began recirculating, claiming that Trump was seriously considering a 90-day pause in tariffs. This created a huge rally in traditional markets, with the S&P 500 shooting up 6% in seconds. This rally turned on a dime to a certain extent, falling again quickly.

S&P 500 Performance During Tariff Rumors
S&P 500 Performance During Tariff Rumors. Source: Google Finance

Following the rumor, XRP rallied nearly 10% to hit $2, while Bitcoin rebounded back to $80,000. Both assets have declined again due to the lack of credibility of the news. Overall, the volatility has been extremely chaotic in the crypto market today.

XRP Daily price chart
XRP Daily Price Chart on Monday, April 7. Source: TradingView

In his interview, Hassett did not make any firm commitments that Trump is considering pausing tariffs. His response focused mostly on ongoing negotiations and assertions that the tariffs would have a limited impact.

Shortly afterward, the White House officially denied any knowledge of a 90-day pause. They are still set to begin in two days.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Binance Founder CZ Joins Pakistan Crypto Council as Advisor

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Changpeng ‘CZ’ Zhao, the founder of Binance, has reportedly taken on a new role as Strategic Advisor to the Pakistan Crypto Council. 

Pakistan’s local media suggests that the appointment was confirmed during a meeting held in Islamabad with top government officials.

CZ Joins Pakistan Crypto Council

The Finance Minister, Senator Muhammad Aurangzeb, reportedly led the session. Other attendees included the heads of Pakistan’s key financial and regulatory bodies—the Securities and Exchange Commission and the State Bank—and senior officials from the law and IT ministries.

According to the reports, Zhao also met separately with Pakistan’s Prime Minister and Deputy Prime Minister to discuss digital asset policy and blockchain adoption.

His involvement with Pakistan follows a recent agreement with the Kyrgyz Republic. There, he is advising on Web3 infrastructure and blockchain education.

Kyrgyzstan has also launched the A7A5 stablecoin, pegged to the Russian ruble. Both Kyrgyzstan and Pakistan are looking to develop their financial ecosystem around crypto to attract industry interest in the regions.

Meanwhile, CZ continues to engage with multiple governments on crypto regulation. He has been focused on building secure frameworks and enabling digital finance ecosystems.

BeInCrypto has contacted Binance about the reports and whether the company is involved in the initiative.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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