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.

USDD collateral — *USDD is backed by USDT and TRX. (USDD*)

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

Shaktikanta Das — *India’s central bank has taken a negative crypto throughout Das’s reign. (Reserve Bank of India*)

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 her meeting with Chinese President Xi Jinping, who pledged Beijing’s assistance in tackling online scams.

The power cuts are expected to affect public infrastructure and local citizens as well, not just the scam centers.

Thailand and Chinese leaders meeting — *China and Thai leaders agreed in Feb. 6 meeting to cooperate against telecom fraud. (State Council of the People’s Republic of China*)

Call center scams have turned Southeast Asia into a global hotspot for pig butchering schemes, with Myanmar, Cambodia, and the Philippines emerging as key hubs. Reports suggest victims are often kidnapped from Thailand, India and other neighboring nations, then trafficked into these compounds and forced to work as scammers. These operations revolve around building trust with victims before luring them into fraudulent investments, frequently involving cryptocurrency.

The borderless nature of cryptocurrency has enabled these syndicates to thrive, along with the rise of Huione Guarantee, a shadowy Telegram-based dark market facilitating money laundering for pig butchering scams. The platform previously relied on centralized stablecoins like Tether’s USDT, but in a bid to evade law enforcement freezes, it has recently launched its own stablecoin.

South Korea’s finance association vows to get crypto ETFs approved

Seo Yoo-seok, chairman of South Korea’s Financial Industry Association, has vowed to introduce a cryptocurrency exchange-traded fund in the domestic market by the end of the year.

South Korea older investors — *Older investors in South Korea are opening their eyes to crypto. (Beautiful Life)*

Seo highlighted the growing demand for crypto-based financial products in the South Korean stock market, pointing to Bitcoin- and Ether-based ETFs as minimum requirements. He said that there is a rising interest in digital assets among investors aged 50 and above, a demographic with significantly larger capital reserves than younger traders who seek safer, regulated avenues to gain exposure to crypto.

Data recently distributed by a local lawmaker found that domestic crypto exchanges saw a 450% increase in new account registrations since Trump’s election victory, with nearly half of those new applicants aged 40 and above.

Despite this demand, South Korea’s top financial regulator does not currently classify cryptocurrencies as eligible underlying assets for securities under the country’s Capital Markets Act.

However, in October, the Financial Services Commission launched a cryptocurrency committee to explore lifting the local ban on crypto ETFs. The committee is also reviewing whether to allow corporate cryptocurrency trading accounts, which remain effectively restricted due to Anti-Money Laundering regulations that currently permit only individuals to open such accounts.

Share Share Share Share

Yohan Yun

Yohan Yun is a multimedia journalist covering blockchain since 2017. He has contributed to crypto media outlet Forkast as an editor and has covered Asian tech stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking, and experimenting with new recipes.