First Digital Trust, the entity behind the FDUSD stablecoin, has rejected recent claims made by Justin Sun.
First Digital Trust described the accusations as untrue and unrelated to their operations. In a message on X, the company clarified that the controversy pertains to TrueUSD, not FDUSD.
“The issue at hand concerns TUSD, not $FDUSD. First Digital is entirely solvent,” FDT stated.
The organization emphasized that FDUSD is completely backed by U.S. Treasury bills, with reserves outlined transparently in their attestation reports.
Insolvency Allegations from Justin Sun
On April 2, Justin Sun alleged that First Digital Trust was insolvent due to the mismanagement of nearly $456 million in TrueUSD reserves.
Legal documents indicated that the assets were redirected into unauthorized investments, which led Sun to provide emergency funding to Techteryx.
“This is a classic Justin Sun smear campaign against a competitor,” FDT remarked, accusing Sun of attempting to harm its business through a coordinated social media strategy rather than resolving the TUSD issue through legal channels.
FDT reiterated its financial stability and the safety of FDUSD reserves, noting that all funds are accurately tracked with verifiable ISIN numbers.
The firm also revealed intentions to pursue legal action to protect its rights and reputation.