TRON founder Justin Solar has introduced a $50 million bounty program to reveal the alleged $500 million embezzlement by First Digital Belief (FDT), the issuer of the FDUSD stablecoin.
In an April 4 assertion on social media, Solar revealed that the bounty represents roughly 10% of the stolen funds. The event comes lower than 24 hours after Solar met with Hong Kong lawmaker Johnny Wu.
He urged insiders and business gamers with related data to return ahead, promising full transparency via a devoted portal, web3bounty.io, that may monitor the investigation and reward course of.
He acknowledged:
“All claims can be rigorously assessed earlier than rewards are delivered.”
In response to Solar, the mission goes past recovering funds. He mentioned the case is about defending the integrity of the web3 ecosystem and defending Hong Kong’s place as a trusted international monetary heart.
On April 3, the TRON founder submitted paperwork to native authorities and pressed for fast regulatory scrutiny on FDT. Solar claimed that the state of affairs exposes deep flaws in how belief entities function throughout the intersection of conventional finance and blockchain platforms.
To boost additional consciousness, Solar hosted a press convention detailing what he mentioned have been extreme irregularities inside FDT. He additionally alleged that the agency was functionally bancrupt however nonetheless working beneath the guise of a public belief.
Hong Kong authorities have since pledged to take swift motion if Solar’s fraud allegations in opposition to FDT show legitimate.
FDUSD suffers
The continued controversy between Solar and First Digital Belief is already having a visual impression on the FDUSD stablecoin.
On April 2, the stablecoin skilled vital value volatility following Solar’s claims however has since stabilized.
Nevertheless, investor confidence seems shaken. Information from CryptoSlate exhibits that FDUSD’s market capitalization dropped from $2.59 billion on April 2 to round $2.2 billion, reflecting an almost $400 million decline inside 48 hours.
FDT has since acknowledged processing some redemptions, attributing the outflows to rising market uncertainty following the allegations.
The crew has additionally promised to defend its enterprise and fame from what it known as a deceptive narrative.
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