‘Typical Justin Sun Smear Campaign’: First Digital Trust Denies Allegations and Plans Legal Action
First Digital Trust Refutes ‘Justin Sun Smear Campaign’ and Stands by FDUSD Transparency The controversy surrounding First Digital Trust (FDT) has escalated, with the firm strongly rejecting allegations made by Justin Sun. Labeling it a "typical Justin Sun smear campaign," FDT emphasized that the accusations are entirely baseless and unrelated to FDUSD, its stablecoin. In a statement posted on X, First Digital Trust clarified that the dispute Sun referenced involves TrueUSD (TUSD) and not FDUSD. “This dispute is with TUSD and not with $FDUSD. First Digital is completely solvent,” the company asserted. FDT reassured investors that FDUSD is fully backed by U.S. Treasury bills and that all reserve details are transparently outlined in attestation reports. The firm dismissed Sun’s claims of insolvency and mismanagement, stating that FDUSD’s reserves remain secure and verifiable. Read More : Binance Confirms FDUSD Reserves Are Accurate After Brief De-Pegging Event Justin Sun’s Allegations and FDT’s Response On April 2, Justin Sun claimed that First Digital Trust was insolvent due to mismanagement of nearly $456 million in TUSD reserves. According to legal filings, these funds were allegedly redirected into unauthorized investments, leading Sun to step in with emergency funding to Techteryx. However, First Digital Trust refuted these accusations, calling them part of a "Justin Sun smear campaign" designed to tarnish its reputation. The company pointed out that Sun’s claims appear to be a coordinated effort to damage its business rather than a legitimate concern over financial stability. FDT further stated that its FDUSD reserves are fully accounted for and backed by verifiable ISIN numbers. The company remains committed to full transparency, providing clear evidence that it is not facing insolvency as Sun suggested. First Digital Trust to Take Legal Action In response to what it describes as defamatory statements, First Digital Trust announced its intention to pursue legal action to protect its reputation. The firm emphasized that it will take all necessary steps to counteract what it believes to be a malicious attempt to mislead the public. FDT’s stance reinforces its commitment to maintaining trust and transparency in the stablecoin market. Despite the ongoing controversy, the company continues to operate FDUSD with full backing and regulatory compliance. As the situation develops, industry watchers are closely monitoring how First Digital Trust and Justin Sun will proceed in what has become an intense legal and reputational battle. Read the full article
