Tron Founder Justin Sun Takes Legal Action Against FDUSD Issuer
Tron’s founder, Justin Sun, has launched a legal battle against First Digital Trust (FDT), the issuer of the FDUSD stablecoin. Sun accuses FDT of misusing nearly $500 million in client funds.
On April 3, Sun met with Hong Kong lawmaker Johnny Wu to report the case. They submitted evidence to local regulators and judicial authorities. Sun believes this is a significant international financial fraud involving conventional finance and web3 platforms.
During a live podcast, Sun exposed what he calls serious irregularities, warning that FDT is insolvent but operating as a public trust.Wu confirmed the meeting and said if the allegations are true, authorities will act. He reassured international investors about Hong Kong’s robust legal system.
Sun’s accusations initially caused FDUSD to lose its dollar peg, dropping to $0.87.It has since stabilized at $0.99. FDT denies all claims, calling them a “smear campaign” and threatening legal action. The company insists FDUSD is fully backed by cash and U.S. Treasury bills.
Binance, holding most of the FDUSD supply, confirmed the stablecoin’s 1:1 backing in an update. Its latest attestation showed $2.05 billion in reserves as of March 1.
