According to H.E. Justin Sun (@justinsuntron), he has extended a $500 million loan to save TUSD and shield token holders from significant losses due to FDT's collapse. By taking on this financial risk, Sun aims to protect the broader cryptocurrency market from potential collateral damage. This move is critical for maintaining confidence in TUSD and stabilizing the associated trading markets. Source: Twitter.

According to Justin Sun, First Digital Trust (FDT) is reportedly unable to fulfill client fund redemptions, indicating potential insolvency. Despite this, FDT continues to operate under a public trust in Hong Kong, highlighting potential regulatory loopholes. Traders should exercise caution due to these financial irregularities.