Tron founder, Justin Sun, has reiterated his claims against First Digital Trust (FDT), stating that the company transferred $500 million of customer funds to banks in Dubai. Sun alleged in a post on May 3 that the funds were distributed among various banks, including Mashreq Bank, Emirates NBD, Abu Dhabi Islamic Bank, and EFG.

He called on Dubai to investigate FDT and named individuals such as Christian Alexander Boehnke, De Lorraine Elbouef, Vincent Chok (FDT CEO), Yai Sukonthabhund, Matthew William Brittain, and Cecilia Teresa Brittain, whom he believes were involved in approving or facilitating the transfers. Sun accused these individuals of holding positions in FDT and associated entities that granted them the authority to misappropriate customer assets.

As Dubai aims to establish itself as a hub for cryptocurrency innovation, Sun urged local banks, regulators, and government bodies to promptly investigate the transfers, freeze suspicious inflows, conduct internal audits, disclose any irregularities, and cooperate with investigations. He emphasized the importance of preventing Dubai from becoming a hub for fraudulent activities.

Sun also compared the alleged embezzlement at FDT to the FTX scandal, deeming it more severe as it did not involve a loan collateral structure or user approval. To support investigations and expose further details, Sun launched a $50 million bounty program and a dedicated website to uncover the purported scam.

FDT has refuted all allegations and initiated a defamation lawsuit against Sun. On the other hand, Hong Kong regulators are reviewing the conduct of local trust companies following the allegations. Amid the controversy, the market cap of FDT's FDUSD stablecoin has significantly decreased from over $2.5 billion to approximately $1.4 billion.