A massive scandal is brewing in stablecoins after crypto celebrity and TRON founder Justin Sun publicly called out Hong Kong-based First Digital Trust (FDT), accusing them of mismanaging nearly half a billion dollars in TrueUSD (TUSD) reserves.

According to Sun, FDT allegedly funneled $456 million into an illiquid commodity fund without permission, leaving issuer Techteryx scrambling and sparking a full-blown crisis.

The shockwaves hit hard—so hard, in fact, that FDT’s own stablecoin, FDUSD, depegged by 9% on April 2, triggering panic across the crypto community.

Justin is rightfully pissed off. He gave $500m worth of TUSD to FDT, who then invested it into the illiquid Aria Commodity Finance Fund. This action, reportedly without Techteryx's permission, led to a significant shortfall in Techteryx’s balance sheet.

On April 7, 2025, FDT fired back days later, claiming they were tasked with holding and managing assets according to Techteryx's instructions, not making investment decisions. They dropped a long X-thread with legal docs, insisting they’ve done nothing wrong and that Techteryx called the shots the whole time.

FDT responded today clarifying that their role since 2021 has been strictly as a custodian. They emphasized that they were tasked with holding and managing assets according to Techteryx's instructions, not making investment decisions.

What's the wild about the story is that investing collateral that's backing stable. Coins is so easy, you just put it into short term securities that generate 4% a year. For some reason, FTT thought they would be smart and placed these funds into a income fund generating 6 to 7% a year in order to capture an extra $15 million a year in profit.

Now that Justin wants his money back, they're not able to return it because of rate volatility has caused the value of the investment to drop below the initial amount leading to their insolvency.

This whole situation is a mess and a clear reason why we need strict rules on where stablecoin collateral can be invested, specifically just cash in short term securities.

Chaos Labs’ deep-dive risk assessment on USD₮0

You need to check out the first truly natively cross-chain stablecoin backed 1:1 by USDT on Ethereum!

This in-depth report breaks down USD₮0’s mechanics, solvency and liquidity safeguards, LayerZero-powered OFT transfers, and why it may be one of the most secure and interoperable stablecoin designs yet.

Whether you’re a DeFi builder, power user, or just stablecoin-curious, this is a must-read to understand the tech, risks, and upside of USD₮0.

Arcadia Finance releases their airdrop checker

Have you ever used Arcadia Finance?

They just launched their airdrop checker to see how many tokens you’ll be recieving in their upcoming TGE on April 10, 2025. Acardia is a Base network DeFi protocol that uses AI-powered yield optimization and integrates with DEXs like Uniswap and Aerodrome, aiming to simplify complex liquidity strategies for users.

Kraken x Mastercard

Kraken users will soon be able to pay at over 150 million merchants using their exchange balances, thanks to Mastercard's global payment rails.

This is an extension of Kraken Pay, which already lets users send funds across borders in over 300 currencies, both fiat and crypto. Now, Kraken plans to launch physical and digital debit cards, allowing for spending at any place Mastercard is accepted.

🧾 David Ripley (Kraken co-CEO) says: “Crypto is transforming payments — and we’re making it practical, fast, and real.”💼 Scott Abrahams (Mastercard) adds: “We’re unlocking real utility for digital assets.”

What’s the secret to not losing money in 2025?

Crime!

BTC, ETH, XRP, and SOL are all down 20-50% this year.

But one coin stands alone, keeping its value even in this crazy bear market.

Monero (XMR)

The elder privacy coin is up 1% even as Trump is crushing the market.

Just goes to show that actual utility keeps value no matter the conditions.

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