First Digital Trust has rejected claims made by Justin Sun regarding liquidity problems, labeling them as part of a “smear campaign.”
The First Digital US-dollar pegged stablecoin (FDUSD) lost its peg on April 2 after Justin Sun, the founder of the Tron network, asserted that First Digital, the issuer of the stablecoin, is insolvent.
In response to these allegations, First Digital assured its users that the issuer is entirely solvent and clarified that the dispute actually involves TrueUSD (TUSD), another stablecoin. The company released a statement on April 2 emphasizing:
“Every dollar supporting FDUSD is completely secure, safe, and accounted for with US-backed Treasury Bills. The specific ISIN numbers of all the reserves for FDUSD are detailed in our attestation report and are clearly accounted for.”
Furthermore, First Digital announced plans to initiate legal action against Sun for his claims made on social media.
This situation is still unfolding, and additional updates will be provided as more information becomes available.