Justin Sun warns users to withdraw funds from First Digital Trust, a Hong Kong-based firm that once served as a fiduciary for Techteryx, the owner of TrueUSD. The comments follow CoinDesk's report that Techteryx filed a lawsuit against First Digital CEO Vincent Chok after the firm redirected nearly half a billion dollars in TUSD reserves into illiquid investments.

FDUSD dropped approximately as much as 9% immediately afterwards, wiping off $130 million from its market cap following Sun's comments.