Chinese Cryptocurrency Chinese Entrepreneur Justin Sun Yuchen urges the government of Hong Kong to quickly repair gaps in financial regulations.
His call for action comes after revealing a “ponzi regime” involving a “traditional financial institution” in city and web 3 platforms.
Sun has raised concerns thanks to an article on X, warning that First Digital Trust (FDT) – a caretaker based in Hong Kong appointed to manage the Trueusd (TUSD) reserves – does not fulfill his responsibilities to complete the buyouts of the Customer Fund. He strongly advised users to take measures to protect their assets.
In an exclusive interview with Sing Tao TIVELINE – The norm’s sister publication – Sun described the incident as “completely shocking”.
The cryptocurrency magnate has lent US $ 460 million (approximately $ 3.6 billion HK) to Helptechteryx, an investment company behind the Tusd Stablecoin, because it could trigger a serious financial crisis if 5 million world users of TUSD discover that they could not convert their digital currency into cash.
He asked that the government and the financial regulators treat systemic gaps while highlighting the need to adequately adapt to the capital entries in web 3.
Sun pointed out that Hong Kong attracts investors because of its strong global position and that the incident is not appropriately addressed, it could affect confidence in the city’s financial market.
