Crypto mogul Justin Sun revealed recently that Techteryx Ltd does not work within his industry, and his involvement in the project was for helping stabilize the market.
Sun explained that with 5 million global users of Techteryx’s TrueUSD (TUSD), if these users discover that their holdings could not be redeemed for cash, it would likely cause a major financial crisis.
Justin Sun’s Take on Techteryx’s TrueUSD (TUSD) Situation
In an interview with Sing Tao Daily, Sun expressed his shock upon first learning about the issue. He said that learning about the situation “shattered his worldview.” He was astonished at how a financial institution could blatantly misuse client assets, transferring them elsewhere without permission. He said his immediate thought was, “This can’t be happening in Hong Kong, can it? This is outright theft of depositors’ funds!”
As per reports, Sun struggled to understand how such large sums could be moved abroad without the consent of the depositors, stressing the need for government, banking institutions, and regulatory bodies to address this issue. He also emphasized that Hong Kong must not become a hotspot for fraudsters seeking to misappropriate funds and highlighted the potential contributions Web 3 companies can make to the economy.
In a related case, Techteryx Ltd. filed accusations against Kelvin Lo, the CEO of Hong Kong’s First Digital Trust (FDT), and Singaporean fund manager Yai Sukonthabhund. The company alleged that they, along with several other firms, orchestrated a fraudulent scheme that misappropriated over $500 million USD (approximately $3.9 billion HKD) in trust deposits from Techteryx and the public.
Note that Techteryx had entrusted FDT with $500 million in reserves, which was supposed to be safeguarded and later invested in a fund based in the Cayman Islands.
However, the fund never issued investment share certificates, and without the knowledge of Techteryx, at least $456 million of the reserves were unlawfully transferred to an offshore private company, Aria DMCC in Dubai, as an unsecured loan. The Cayman Islands fund has since refused to redeem or repay the funds to Techteryx Ltd.
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