First Digital Labs has unveiled a new attestation report that confirms its FDUSD stablecoin is entirely backed, despite ongoing fraud allegations from Tron’s founder, Justin Sun.
The report, made accessible on April 14, states that the reserves—amounting to more than $1.74 billion in U.S. Treasury bills and $603 million in overnight repurchase agreements—are in line with the total supply of 2.58 billion tokens of First Digital USD (FDUSD). Additional assets comprise fixed deposits across various jurisdictions.
The organization reiterated that all FDUSD reserves are preserved in bankruptcy-remote accounts and are never intermingled with company funds. Furthermore, it disclosed that over $1 billion in FDUSD has been redeemed thus far without any issues.
This announcement comes just a few days after Justin Sun accused First Digital Trust of misappropriating nearly $500 million in client funds. He alleges that the firm, along with its associates, including Dubai-based Aria DMCC, misled the stablecoin issuer into transferring funds to an unrelated entity. According to Sun, the money was rerouted through a fraudulent address switch and partially deposited into a Hong Kong account labeled “Glass Door.”
Sun named several individuals allegedly involved and characterized the scheme as a “major international financial fraud,” likening it to a traditional crypto wallet exploit. He also conducted a livestream and met with regulators in Hong Kong to present his evidence. In response, First Digital Trust has denied all charges and initiated a defamation lawsuit in Hong Kong’s High Court.
The company seeks to prevent Sun from repeating these claims while demanding retractions and damages. Earlier this month, this controversy led FDUSD to momentarily lose its peg, dropping to a low of $0.87. At the time of writing, the stablecoin has since recovered and is trading at $0.99.
Issued by FD121 Limited and overseen by First Digital Trust, FDUSD is increasingly recognized as a fiat-backed, regulated stablecoin. It is currently operable on the Ethereum (ETH), BNB Chain (BNB), Solana (SOL), and Sui (SUI) networks.
As the legal proceedings continue, First Digital Trust has stated it will maintain its practice of releasing regular attestations and collaborating with independent firms to ensure transparency around its reserves.