First Digital Trust Denies Insolvency Claims, Stands by FDUSD Stability
First Digital Trust (FDT), the issuer of the FDUSD stablecoin, has denied recent accusations made by Justin Sun. FDT clarified that the controversy is related to TrueUSD (TUSD), not FDUSD.
In a statement on X, FDT emphasized that the dispute does not involve their stablecoin. “This is a matter concerning TUSD, not $FDUSD. First Digital is fully solvent,” the company stated.
FDT highlighted that FDUSD is backed by U.S. Treasury bills, with reserve details available in their attestation reports. This openness ensures the stability and security of the stablecoin.
On April 2, Justin Sun alleged that First Digital Trust was insolvent due to mismanaging nearly $456 million in TUSD reserves. Legal documents revealed that these funds were used for unauthorized investments,leading Sun to provide emergency funding to Techteryx.
FDT dismissed Sun’s claims as a smear campaign. “This is a typical Justin sun tactic to harm a competitor,” FDT said. They accused Sun of using social media to damage their business rather of letting the TUSD issue be resolved in court.
FDT reaffirmed their solvency and the security of FDUSD reserves. All funds are accounted for with verifiable ISIN numbers. the company plans to take legal action to protect its rights and reputation.
