When I received the news in the early morning, I thought it was a rumor—until I saw that string of numbers: $450 million.

# The Cost of Trust

Last year, when TUSD was acquired, the market was in jubilation. The promise of "1:1 pegging to the US dollar" was like a tranquilizer, leading many to heavily invest. Who would have thought that this bomb would explode in 2023.

A trust company in Hong Kong (FDT) quietly transferred $500 million in reserves. By the time the news broke, token holders were already in a panic. Even more bizarre, the parties involved issued FDUSD and secured endorsements from top exchanges — the original TUSD? The price was directly halved.

# The Pursuit of Payment Mystery

Sun Yuchen personally shelled out 456 million USD to stabilize the situation. However, FDT was not convinced and retaliated by claiming that the other party had issues with their capital chain. This conflict gradually evolved into a transnational legal battle: a freeze order was issued by the Dubai court, while there was silence from Hong Kong.

Interestingly, the rights protection announcement directly offers a reward of 50 million. This blend of "jianghu rules" and traditional financial litigation procedures aligns well with the wild nature of the cryptocurrency industry.

# Stablecoins Are Not Stable

The biggest lesson from this incident is not about how much money someone lost, but rather that it exposed a regulatory vacuum regarding the reserves of stablecoins. The so-called "audit reports" and "custody proofs" are as fragile as a piece of paper in the face of interests.

The flow of funds between FDT and Aria DMCC has not been fully clarified to date, with several offshore entities trading back and forth, making it completely incomprehensible for ordinary users. By the time they realize it, the money has already circled through several jurisdictions.

Ultimately, this farce reminds us: do not trust any promises of "guaranteed payouts." In this industry, code can lie, and people can even more.