First Digital denies allegations, threatens legal action

FIRST Digital Trust, the FDUSD transmitter Stablecoin, refuted the recent allegations of Justin Sun.

First Digital Trust described the allegations of false and unrelated to its operations. In a declaration on X, FDT clarified that the controversy implies Trueusd, not Fdusd (Fdusd).

“This dispute is with Tusd and not with $ fdusd. First digital is completely solvent,” published FDT.

The firm stressed that the FDUSD is entirely supported by American Treasury bills, with transparent reserve details described in its certificate reports.

Justin Sun insolvency complaints

On April 2, Justin Sun claimed This first digital trust was insolvent after managing almost $ 456 million in Trueusd’s reserves.

Legal deposits have revealed that funds had been diverted from unauthorized investments, which prompted Sun to provide emergency funding in Techteryx.

“This is a Typical Sun smear campaign to attack a competitor,” said FDT, accusing Sun of trying to harm his business thanks to a coordinated social media effort rather than allowing the Tusd dispute to be resolved in court.

FDT has reaffirmed its solvency and FDUSD reserves safety, adding that all funds are taken into account with verifiable Isin numbers.

The company also announced its intention to take legal proceedings to defend its rights and its reputation.