FTX News: Is FTX’s Debt Token (FUD), Legit? Justin Sun and Huobi are a scam?
Wassielawyer, a crypto influencer and lawyer, warns that FTX Users’ Debt(FUD) bond token by DebtDAO is in violation of securities laws.
Fake DebtDAO group announced Saturday that it is issuing bond token FTX User’s Debt (FUD), on behalf of FTX creditors.
Justin Sun’s crypto exchange Huobi published the FUD token on Sunday. It claimed to be beneficial for the crypto market.
FTX Debt Token (FUD) Violates Securities Laws
A crypto influencer and a lawyer, wassielawyer, took to Twitter to warn the crypto community about the violation of securities laws by Huobi’s FTX Users Debt (FUD), bond token. He called the token “securitized trash debt”, which he said was a risk to retail investors and likely didn’t exist.
“So Huobi is listing these FTX debt tokens. This is not a debt token at all, it’s a securitization. This is a terrible idea from so many angles. Not all debt claims can be fungible and are not equal.
John Ray III, the new CEO of FTX, tries to pay back money to creditors by selling FTX assets, Japan- and Europe-based subsidiaries, cash available, and other means to get FTX back in business quickly.
DebtDAO was founded by senior professionals in debt market.
DebtDAO also announced the issuing of bond token FTX Users Debt (FUD), on behalf FTX creditors. The initial supply and circulation are 20 million tokens. Each FUD token is worth $1.
Justin Sun-backed Huobi Global listed FUD token on Sunday, causing controversy in the crypto market. Tron founder Justin Sun promoted the listing and even tagged FTX on Twitter. The tweet reads:
“Huobi Global has published Users’ Debt Tokens (FUD) on its website. This bond token is the highest quality FTX debt asset, and it will benefit everyone in crypto.
Scammers distributed fake tokens to Justin Sun
PeckShieldAlert discovered a fake token $FUD (FTX User’s Debt) that was distributed by scammers to Huobi Exchange on Monday. To add liquidity, scammers claimed to be Huobi exchange and sent millions of $FUD tokens directly to Justin Sun. Justin Sun informed the community later that the original FUD token was only available on Tron blockchain and not Ethereum.
Interstingly, wassielawyer along with other crypto influencers discovered that the original @debtdao wasn’t behind these tokens from #debtdaoio. The FUD token is not a legitimate debt token, which Huobi has inexplicably decided that he would list.
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