Key Takeaways:
- TRON founder Justin Sun is being sued by First Digital Trust for defamation over insolvency claims related to the FDUSD stablecoin.
- The lawsuit seeks an injunction, public retractions, and damages for harm to First Digital’s business and contractual relations.
- Sun has not formally responded in court but continues to publicly assert his claims and criticize Hong Kong’s trust service regulations.
Justin Sun, founder of TRON, is facing a defamation lawsuit from Hong Kong-based custodian First Digital Trust after alleging on social media that the company is insolvent.
The claims coincided with a temporary de-pegging of First Digital’s stablecoin, FDUSD, on April 3, though the token has since regained its value.
In response, First Digital filed a writ of summons in the Hong Kong High Court (case number HCA 680), seeking an injunction to stop further similar statements, public retractions, and damages for alleged interference with its business relationships.
Despite the legal action, Sun has doubled down on his accusations, alleging fraud and urging regulators to review trust service rules.
First Digital countered by releasing data showing redemptions are operating normally.
I welcome any legal process that brings more facts into the open.
— H.E. Justin Sun 🍌 (@justinsuntron) April 9, 2025
If that means taking it to court or continuing to shine a light through public disclosures, I will do both.
✍️@ParkKunwoong / @TheBlock__ https://t.co/9PnuTFNj2b
No preliminary hearing date has been set, and Sun has not formally responded in court, though he stated on X that he “welcomes any legal process.”
The lawsuit highlights rising tensions between blockchain entrepreneurs and custodial institutions in the stablecoin space.
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