Justin Sun, the founder of the Tron blockchain, has reportedly bailed out TrueUSD (TUSD) with $500 million after $456 million of its reserves became illiquid. The reserves were managed by First Digital Trust (FDT), which Techteryx, the issuer of TUSD, claims was a victim of large-scale fraud involving unauthorized investments in Aria Commodity Finance Fund and Aria Commodities DMCC. Sun's intervention came after the reserves were stuck, leading to a significant financial shortfall. First Digital Trust has denied Sun's allegations, labeling them as a smear campaign and asserting that their stablecoin, FDUSD, remains fully backed and solvent. FDT's CEO, Vincent Chok, has categorically denied any wrongdoing or participation in fraudulent schemes. The controversy has led to a visible impact on FDUSD, with its market capitalization dropping by nearly $400 million within 48 hours following Sun's accusations. FDT has also indicated plans to pursue legal action against Sun for his claims. In response to the allegations, Sun has called for reforms in Hong Kong's trust laws, highlighting systemic loopholes that he believes enabled the alleged misappropriation of funds. He has also announced a $50 million bounty program to encourage industry insiders to expose any misconduct by FDT, promising transparency through a dedicated portal. Sun's accusations have been met with AML/KYC concerns from Aria, related to the beneficial ownership of Techteryx, identified as Li Jinmei. Additionally, TUSD faced further challenges with the collapse of Prime Trust and a SEC settlement over false marketing claims.