Wow! What kind of style is this!!
A couple of days ago at the TUSD event press conference, a community member asked Sun Ge a question:
Is this incident a problem with a specific Hong Kong trust company, or is it a vulnerability in the entire crypto custody industry? Is there anything that can warn the industry?
Sun Ge stated: The TUSD incident is not an isolated case, but a systemic alarm for the entire crypto custody industry.
1️⃣ This is not a problem of individual institutions, but a systemic flaw in the traditional custody system. TUSD reserve assets should have been strictly stored 1:1 in highly liquid, low-risk U.S. Treasury bonds, but were unauthorizedly transferred to unlicensed private entities—essentially misappropriating user funds.
2️⃣ Multi-layer offshore structures are abused to hide risks. Involved parties operate across multiple jurisdictions, weakening regulatory penetration through complex structures, allowing illegal gains to be “cleaned” into private assets.
3️⃣ Internal governance is virtually nonexistent. Forged investment instructions, false statements, secret kickbacks... indicate that compliance and risk control are almost ineffective within some licensed institutions. To resolve custody risks, Sun Ge believes it is necessary to:
* Establish transparent and traceable custody paths
* Funds can only be stored in licensed compliant banks
* Introduce criminal liability for senior executives, making any illegal instructions traceable to individuals and bearing legal consequences
Crypto custody is not “safe just because there is a license”—governance structure, risk control, and transparency are the real underlying moats. This incident serves as a mandatory physical examination for the entire industry, and we hope Binance enhances security measures to ensure the safety of user funds!!#币安HODLer空投AT
