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First Digital Eyeing Legal Action Following Justin Sun Allegations

The stablecoin FDUSD depegged after Sun claimed the exchange was 'effectively insolvent.'

Apr 2, 2025 • 1 min read

First Digital denies insolvency claims by Justin Sun and plans legal action, addressing FDUSD's deviation from its $1 peg.

What’s the Scoop?

FDUSD Depegs: The Hong Kong-based stablecoin fell to $0.87 against Tether (USDT) and $0.76 against USDC on Binance before stabilizing at $0.98.
Justin Sun's Claims: Tron founder Justin Sun alleged that First Digital Trust, which manages FDUSD reserves, is 'effectively insolvent' and warned users to secure their assets.
First Digital's Response: First Digital refuted Sun's claims, asserting solvency with reserves backed by U.S. Treasury bills and accusing Sun of launching a smear campaign.
Legal Action: First Digital intends to take legal action to protect its reputation and business against the allegations.

The recent allegations by Justin Sun against First Digital Trust are completely false.

This dispute is with TUSD and not with $FDUSD. First Digital is completely solvent.

Every dollar backing $FDUSD is completely, secure, safe and accounted for with US backed T-Bills. The…
— First Digital (@FirstDigitalHQ) April 2, 2025

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