Justin Sun Alleges First Digital Trust Scandal ’Dwarfs FTX’ in Unauthorized Fund Transfer Controversy

TRON founder Justin Sun has raised alarms about a developing scandal involving Hong Kong-based custodian First Digital Trust (FDT), claiming it could surpass the severity of the FTX collapse. Sun alleges that FDT engaged in unauthorized fund transfers without the deceptive tactics seen in previous crypto scandals.

Justin Sun Claims First Digital Trust Scandal Is ‘Worse Than FTX’

The crypto world is no stranger to scandals, but TRON founder Justin Sun is sounding the alarm on a situation he claims could be even worse than the infamous FTX collapse. The controversy is centered around the First Digital Trust (FDT), a Hong Kong-based custodian reportedly involved in unauthorized fund transfers. Sun claims this is ’significantly worse’ than what FTX pulled off, as FDT allegedly skipped the smoke and mirrors altogether and directly took $456 million from TUSD.

SOL Drops 20% Amid Market Pressures and FTX Concerns

Solana (SOL) is experiencing a significant price drop in April 2025, with a decline of over 20% to $125. The blockchain giant, once seen as a promising Ethereum alternative, now faces headwinds due to broader market pressures and lingering concerns related to the defunct FTX exchange. Reports indicate that 61% of FTX’s $800 million in liquidated assets are tied to Solana, casting a bearish shadow over its price action. An expected sell-off from the FTX estate, scheduled for May 30, could further flood the market and drive SOL’s price lower. Amid the market chaos, SOL’s price dropped to $102 in just a few hours, following the broader trend of major currencies.