In accordance with Bijiawang, Sun Yuchen is escalating a legal and reputational battle in Hong Kong over the handling of TrueUSD stablecoin reserves. He claims that First Digital Trust exploited a loophole in trust rules to transfer $456 million in reserves to Dubai's Aria Commodities for illiquid commodity trading, violating the principles of stablecoin backing. The Dubai International Financial Centre court has frozen Aria's assets due to 'serious issues requiring adjudication.' Meanwhile, Sun and Legislative Council member Wu Zhaoxie are urging Hong Kong to strengthen trust company oversight as it develops stablecoin regulations.
Sun Yuchen's $456M TrueUSD Dispute Highlights Potential Regulatory Gaps in Hong Kong Trust Companies
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