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 said, “This dispute is with TUSD and not with $FDUSD. First Digital is completely solvent.” The company emphasized that FDUSD is fully backed by U.S. Treasury bills, with reserve details transparently outlined in its attestation reports.
On April 2, Justin Sun claimed that First Digital Trust was insolvent after mismanaging nearly $456 million in TrueUSD reserves. legal filings revealed that the funds were diverted into unauthorized investments, prompting Sun to provide emergency funding to Techteryx.
FDT accused Sun of attempting to damage its business through a coordinated social media effort. “This is a typical Justin Sun smear campaign to attack a competitor,” FDT stated. The company reaffirmed its solvency and the security of FDUSD reserves, adding that all funds are accounted for with verifiable ISIN numbers.
FDT plans to take legal action to defend its rights and reputation. The company remains committed to maintaining the stability and openness of FDUSD.
