Justin Sun reignites HTX feud, India reconsiders crypto hate: Asia Express

Justin Sun reignites feud with HTX co-founder

Tron founder Justin Sun has rekindled a years-long feud with HTX co-founder Leon Li by accusing Li of fraud.

In an X post, Sun alleged that Li concealed critical due diligence materials during the sale of HTX, previously known as Huobi, leaving a $30 million hole in the exchange’s balance sheet. Sun claimed that he personally lent $30 million to cover the shortfall but the money has yet to be repaid.

Li hasn’t denied the $30 million gap but disputed Sun’s version of events in a statement reportedly distributed by his inner circle. Instead, he attributes the missing funds to margin calls triggered by the exchange’s high-risk leverage trading operations.

Huobi was acquired by Hong Kong-based About Capital Management in October 2022. Sun has denied being the real buyer behind the curtains but has faced widespread skepticism. He is listed as an “adviser” to the exchange and often acts as the public face of the brand to promote and announce key business developments. 

The public spat between the two crypto businessmen has been escalating for some time. In 2023, Sun accused Li’s brother, Wei Li, of illegally acquiring millions of Huobi’s native tokens at zero cost. Li fired back, calling for HTX to provide evidence and vowing to repay ten times the amount if wrongdoing was proven.

The feud reignited on Feb. 4 courtesy of Sun’s X post promoting the launch of the second version of his USDD stablecoin and its 20% annual yield. Sun provoked Li in the post by claiming that he guarantees the yield payments to anyone, even Li.

USDD is an algorithmic stablecoin that has been controversial. It debuted in May 2022 in the wake of Terra’s catastrophic UST collapse, which wiped out tens of billions of crypto investors’ funds. Like UST, USDD was initially designed around an arbitrage mechanism using Tron’s TRX token, though it has since pivoted to a collateralized model.

Tron DAO claims that USDD is overcollateralized, with Tether’s centralized stablecoin USDT acting as its primary reserve asset.

The 20% APY that Sun is promoting has drawn sharp comparisons to Anchor Protocol’s ill-fated high-yield scheme, which proved to be unsustainable. The crypto community has questioned the authenticity of such an offer, demanding to know where the yield comes from. Tron DAO insists it is subsidizing the payout and claims the yield will gradually decrease to 5% over time.

India may be considering a softer crypto stance

India’s economic affairs secretary, Ajay Seth, reportedly said the government is reassessing its stance on cryptocurrencies, potentially delaying the long-awaited discussion paper initially slated for last September.

Seth signaled that India may align its approach with global regulatory trends, acknowledging the borderless nature of digital assets. 

The global attitudes toward cryptocurrencies have shifted as of late, largely driven by US President Donald Trump’s election victory in November. Trump’s campaign included several crypto-friendly policy pledges.

Reports have since emerged that Indian officials are consulting experts who favor a ban on cryptocurrencies, while former central bank governor Shaktikanta Das reiterated his opposition to stablecoins before leaving office in December. 

Das, a vocal crypto critic since his appointment in 2018, stepped down as the Reserve Bank of India’s chief, fueling speculation that his successor, Sanjay Malhotra, might take a softer stance on digital assets. Malhotra has yet to make any official statements on the matter.

Despite strict taxation policies that local exchanges blame for stifling the industry, India — the world’s most populous nation — topped Chainalysis’ global crypto adoption rankings in 2024.

Thailand pulls the plug on Myanmar’s pig butchers

Thailand has cut off power and fuel supplies to three Myanmar border regions in a bid to disrupt the rampant call center scam operations in Southeast Asia.

Prime Minister Paetongtarn Shinawatra said that she had authorized the immediate power cut in a recent cabinet meeting if there was confirmation that the electricity was fueling scam operations. Shinawatra’s decision came before…