First Digital Trust Files Defamation Claim Against Justin Sun
Justin Sun's allegations that Hong Kong-based custodian First Digital Trust is insolvent have landed him in the cross-hairs of a defamation claim initiated by the company.
First Digital's FDUSD stablecoin briefly de-pegged on April 3 after Sun claimed the company was "insolvent," though it has since virtually recovered, according to CoinDesk markets data.
The writ of summons, the first step in a defamation claim, was filed late last week and requests the Hong Kong High Court to issue an injunction restraining Sun from making further statements on the matter. It also asks for an injunction requiring Sun to publish retractions.
It also asks for the Court to issue an award for damages (though it doesn't specify how much) for "unlawful interference with the Plaintiff's contractual and business relationships" and "causing damage to the Plaintiff's business."
In the time since Sun made his first claim on X that First Digital was insolvent, the Tron founder has since doubled down on the issue, holding a press conference late last week in Hong Kong alleging fraud and calling on the territory's regulators to reform rules around trusts.
For its part, First Digital has posted examples of redemptions going through.
A date for an initial court hearing has not been set. Sun has not yet filed a response, but posted on X that he "welcomes any legal process."
A spokesperson for Sun had no comment on the matter.
The case number is HCA 680 in Hong Kong's High Court.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
an hour ago
- CNBC
China's EV race to the bottom leaves a few possible winners
China's electric car price war shows little sign of letting up, putting more pressure on companies to survive. Tesla 's China sales fell by 15% in May from a year ago, China Passenger Car Association data showed. BYD , in contrast, reported a 14% year-on-year sales increase as it held onto first place in the market by volume, but even it had to announce sharp discounts as sales growth slowed from April's pace. "We expect additional price competition in the coming weeks as BYD is still lagging behind its sales target," said a team of analyst led by CLSA analyst Xiao Feng in a report Wednesday. While the analysts still have a high conviction, with an outperform rating on BYD's Hong Kong-listed shares, they see Geely as the 'best positioned" for investors as it is striking the optimal balance with its internal business structure and competing on vehicle price. CLSA has a price target of 483 Hong Kong dollars ($61.55) on BYD, and a 23 HKD target on Geely, also listed in Hong Kong. That's upside of nearly 20%, and 28%, respectively, from Friday's close. Geely is a large conglomerate with electric vehicle brands Galaxy, Zeekr and Lynk and Co., which share some of the same tech and manufacturing systems. "Geely's Galaxy NEV brand has successfully targeted BYD's popular models with better specs and lower prices," Macquarie analysts said in a report Thursday, citing a call with an auto dealer who manages dealerships for BYD, Geely and Xpeng in the relatively affluent Suzhou region near Shanghai. "The expert believes Geely's success will continue, as it is still ramping up new models to compete with BYD's entire model line-up," the report said. The Macquarie analysts have a price target of 22 HKD on Geely and rate the stock outperform. But they like U.S.-listed electric car startup Xpeng even more, with a $24 price target. Xpeng is likely to benefit from near-term market share gains given its advanced driver assist system and upcoming car models, the analysts said. The latest delivery data showed Xpeng delivered more than 30,000 cars in May for a seventh straight month, a rare feat among its immediate peers. The company last month also launched a new car under its lower-priced Mona brand. Among publicly listed new energy vehicle companies, a category that includes battery-only and hybrid-powered cars, Leapmotor and Li Auto have proven relatively stable, each with deliveries of more than 40,000 vehicles in May. Both companies have Hong Kong listings, while Li Auto also trades in New York. "Through a continuously expanding product matrix and cost-effective models, Leapmotor has achieved a stable market share in the Chinese mass EV market and has strong growth potential," the CLSA analysts said. They have a price target of 72 HKD, or more than 30% upside from Friday's close. Leapmotor reported a net loss in the first quarter, however, compared with profit in the fourth quarter. But Li Auto maintained profitability in the first quarter, according to results released on May 29. "We still see ample upside as a better-than-feared 1Q should inspire investor conviction about sequential recovery in 2Q," Morgan Stanley analysts said in a May 29 report. They have a price target of $36, for upside of more than 20% from Thursday's close. "The management team has found its pace for a steady and solid comeback, underpinning a more material resurgence of volume/margins into 2H25 amid new model launches," the analysts added. "Li Auto's premium model lineup can steer clear of the fierce pricing competition in the mass market." Li Auto is best known for its SUVs that come with a gas tank for extending the battery's driving range. Prices start around 244,000 yuan ($34,000). Industry giant BYD in contrast now sells some cars at 55,800 yuan, with most models falling in the 100,000 yuan to 200,000 yuan price range. The company also has a high-end sub-brand called Yangwang, which prices cars at well above 1 million yuan. Analysts that still like the stock see potential in BYD's overseas expansion. The narrative on BYD among European investors "sounds more optimistic," contrary to more cautious sentiment in China following the automaker's recent price promotions, JPMorgan's Nick Lai, head of Asia Pacific auto research said in a report Wednesday. Lai and his team also cited conversations with senior BYD management in London in the last week. "All in all, we retain our long-term positive view on the company and believe the (earnings) contribution from the overseas market and BYD's premium portfolio will increasingly play an important role," the JPMorgan analysts said. "We estimate that BYD's overseas business and premium brands will together contribute over 40% of its vehicle earnings in 2025 (up from 20-25% last year) even though they account for only about 20% of volume." The analysts rate BYD overweight, with a price target of 600 HKD. However, the risk of a flood of cheap cars into markets such as Europe have prompted tariff increases. In China, official commentary is also sounding the alarm about excessive competition. "We believe an end to the current price war will come down to simple economics," the Macquarie analysts said, pointing out that production capacity for both electric and traditional vehicles is more than 50 million units, well above the annual wholesale volume of 25 million to 27 million vehicles. "Thus, the market will likely stabilize either via higher demand or right-sized capacity and consolidation," the analysts said. "We believe this may take at least another three to five years." — CNBC's Michael Bloom contributed to this report.
Los Angeles Times
2 hours ago
- Los Angeles Times
No Supreme Court win, but Mexico pressures U.S. on southbound guns
MEXICO CITY — More than a decade ago, Mexican authorities erected a billboard along the border in Ciudad Juárez, across the Rio Grande from El Paso. 'No More Weapons,' was the stark message, written in English and crafted from 3 tons of firearms that had been seized and crushed. It was a desperate entreaty to U.S. officials to stanch the so-called Iron River, the southbound flow of arms that was fueling record levels of carnage in Mexico. But the guns kept coming — and the bloodletting and mayhem grew. Finally, with homicides soaring to record levels, exasperated authorities pivoted to a novel strategy: Mexico filed a $10-billion suit in U.S. federal court seeking to have Smith & Wesson and other signature manufacturers held accountable for the country's epidemic of shooting deaths. The uphill battle against the powerful gun lobby survived an appeals court challenge, but last week the U.S. Supreme Court threw out Mexico's lawsuit, ruling unanimously that federal law shields gunmakers from nearly all liability. Although the litigation stalled, advocates say the high-profile gambit did notch a significant achievement: Dramatizing the role of Made-in-U.S.A. arms in Mexico's daily drumbeat of assassinations, massacres and disappearances. 'Notwithstanding the Supreme Court ruling, Mexico's lawsuit has accomplished a great deal,' said Jonathan Lowy, president of Global Action on Gun Violence, a Washington-based advocacy group. 'It has put the issue of gun trafficking — and the industry's role in facilitating the gun pipeline — on the bilateral and international agenda,' said Lowy, who was co-counsel in Mexico's lawsuit. A few hours after the high court decision, Ronald Johnson, the U.S. ambassador in Mexico City, wrote on X that the White House was intent on working with Mexico 'to stop southbound arms trafficking and dismantle networks fueling cartel violence.' The comments mark the first time that Washington — which has strong-armed Mexico to cut down on the northbound traffic of fentanyl and other illicit drugs — has acknowledged a reciprocal responsibility to clamp down on southbound guns, said President Claudia Sheinbaum. She hailed it as a breakthrough, years in the making. 'This is not just about the passage of narcotics from Mexico to the United States,' Sheinbaum said Friday. 'But that there [must] also be no passage of arms from the United States to Mexico.' Mexico is mulling options after the Supreme Court rebuff, Sheinbaum said. Still pending is a separate lawsuit by Mexico in U.S. federal court accusing five gun dealers in Arizona of trafficking weapons and ammunition to the cartels. Meanwhile, U.S. officials say that the Trump administration's recent designation of six Mexican cartels as foreign terrorist organizations means that weapons traffickers may face terrorism-related charges. 'In essence, the cartels that operate within Mexico and threaten the state are armed from weapons that are bought in the United States and shipped there,' U.S. Secretary of State Marco Rubio told a congressional panel last month. 'We want to help stop that flow.' On Monday, federal agents gathered at an international bridge in Laredo, Texas, before an array of seized arms — from snub-nosed revolvers to mounted machine guns — to demonstrate what they insist is a newfound resolve to stop the illicit gun commerce. 'This isn't a weapon just going to Mexico,' Craig Larrabee, special agent in charge of Homeland Security Investigations in San Antonio, told reporters. 'It's going to arm the cartels. It's going to fight police officers and create terror throughout Mexico.' In documents submitted to the Supreme Court, Mexican authorities charged that it defied credibility that U.S. gunmakers were unaware that their products were destined for Mexican cartels — a charge denied by manufacturers. The gun industry also disputed Mexico's argument that manufacturers deliberately produce military-style assault rifles and other weapons that, for both practical and aesthetic reasons, appeal to mobsters. Mexico cited several .38-caliber Colt offerings, including a gold-plated, Jefe de Jefes ('Boss of Bosses') pistol; and a handgun dubbed the 'Emiliano Zapata,' emblazoned with an image of the revered Mexican revolutionary hero and his celebrated motto: 'It is better to die standing than to live on your knees.' Compared with the United States, Mexico has a much more stringent approach to firearms. Like the 2nd Amendment, Mexico's Constitution guarantees the right to bear arms. But it also stipulates that federal law 'will determine the cases, conditions, requirements and places' of gun ownership. There are just two stores nationwide, both run by the military, where people can legally purchase guns. At the bigger store, in Mexico City, fewer than 50 guns are sold on average each day. Buyers are required to provide names, addresses and fingerprints in a process that can drag on for months. And unlike the United States, Mexico maintains a national registry. But the vast availability of U.S.-origin, black-market weapons undermines Mexico's strict guidelines. According to Mexican officials, an estimated 200,000 to half a million guns are smuggled annually into Mexico. Data collected by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives illustrate where criminals in Mexico are obtaining their firepower. Of the 132,823 guns recovered at crime scenes in Mexico from 2009 to 2018, fully 70% were found to have originated in the U.S. — mostly in Texas and other Southwest border states. In their lawsuit, Mexican authorities cited even higher numbers: Almost 90% of guns seized at crime scenes came from north of the border. Experts say most firearms in Mexico are bought legally at U.S. gun shows or retail outlets by so-called straw purchasers,who smuggle the weapons across the border. It's a surprisingly easy task: More than a million people and about $1.8 billion in goods cross the border legally each day, and Mexico rarely inspects vehicles heading south. In recent years, the flood of weapons from the United States has accelerated, fueling record levels of violence. Mexican organized crime groups have expanded their turf and moved into rackets beyond drug trafficking, including extortion, fuel-smuggling and the exploitation of timber, minerals and other natural resources. In 2004, guns accounted for one-quarter of Mexico's homicides. Today, guns are used in roughly three-quarters of killings. Mexican leaders have long been sounding alarms. Former President Felipe Calderón, who, with U.S. backing, launched what is now widely viewed as a catastrophic 'war' on Mexican drug traffickers in late 2006, personally pleaded with U.S. lawmakers to reinstate a congressional prohibition on purchases of high-powered assault rifles. The expiration of the ban in 2004 meant that any adult with a clean record could enter a store in most states and walk out with weapons that, in much of the world, are legally reserved for military use. 'Many of these guns are not going to honest American hands,' Calderon said in a 2010 address to the U.S. Congress. 'Instead, thousands are ending up in the hands of criminals.' It was Calderón who, near the end of his term, ventured to the northern border to unveil the massive billboard urging U.S. authorities to stop the weapons flow. His appeals, and those of subsequent Mexican leaders, went largely unheeded. The verdict is still out on whether Washington will follow up on its latest vows to throttle the gun traffic. 'The Trump administration has said very clearly that it wants to go after Mexican organized crime groups,' said David Shirk, a political scientist at San Diego University who studies violence in Mexico. 'And, if you're going to get serious about Mexican cartels, you have to take away their guns.' Special correspondent Cecilia Sánchez Vidal contributed to this report.
San Francisco Chronicle
3 hours ago
- San Francisco Chronicle
Nordstrom is coming back to San Francisco — but not how you remember it
The move comes nearly two years after the retailer's dramatic departure from downtown San Francisco, where it closed both its flagship store at Westfield Mall and a nearby Nordstrom Rack in 2023. Unlike its full-scale department stores, the upcoming 1,648-square-foot Nordstrom Local, set to open at 1919 Fillmore St., will not carry traditional retail inventory. Instead, it will function as a neighborhood hub offering online order pickups, returns, tailoring and personal styling appointments. The space will feature eight dressing rooms, a styling suite, and customer amenities including same-day delivery — and even a glass of wine or beer during visits. 'We're welcoming Nordstrom back,' said Planning Commission President Lydia So during the hearing. 'And we're welcoming whoever else wants to come back — or those who never considered coming here because things are hard.' After months of debate and outreach, the commission approved the proposal in a 5–2 vote. Still, the decision was not without controversy. Several residents and small business owners voiced concern that the store would worsen traffic congestion and fail to align with the neighborhood's character. 'This will increase traffic and hurt small businesses,' wrote Sharon Esker, who has lived in the neighborhood since 1969. 'It is not a retail store and I would like a better alternative to this space.' Neighbor Ditka Reiner criticized the landlord's decision to lease to a national retailer, noting that 'chain stores typically contribute to rising rents that push out small, local, independent businesses that are the backbone of a city.' The storefront, previously home to Minted, has been vacant since the early days of the pandemic and has become a symbol of the city's broader commercial vacancy crisis. But support for the project also came from a number of Fillmore Street merchants. 'Nordstrom has long been a responsible and engaged member of San Francisco's business landscape,' wrote Molly Leonetti, president of local boutique Clare V. 'Their presence will not only bring new energy to Fillmore Street but also support the success of neighboring businesses, including ours.' Andrew Graham, vice president of sales at San Francisco-based Marine Layer, agreed. 'Their convenient services, from order pickups to alterations, will attract customers who are likely to explore and shop at nearby stores, further strengthening the local economy,' he wrote. The debate around Nordstrom's return underscores ongoing tensions in San Francisco's recovery, between attracting commercial tenants to fill empty storefronts and preserving the unique character of neighborhood retail corridors.
