First Digital Denies Fund Misappropriation Allegations, Asserts Financial Stability

First Digital, a prominent digital asset management firm, has issued a formal statement in response to recent allegations made by Justin Sun. The statement, released on a social media platform, categorically denies any involvement in a coordination scheme or fund misappropriation, labeling the accusations as baseless and factually incorrect.

The firm emphasized that it acts solely as an intermediary, executing transactions based on the instructions provided by Techteryx and its authorized representatives. First Digital clarified that it is not obligated to independently assess or advise on Techteryx's investments. The company asserted that all reserve assets are deployed strictly according to written instructions from Techteryx and its authorized representatives, and that records of these instructions are maintained as evidence.

Regarding Techteryx's request to redeem funds, First Digital highlighted concerns raised by ARIA about anti-money laundering (AML) and Know Your Customer (KYC) procedures related to the acquisition transaction between TrueCoin and Techteryx. The firm noted that Techteryx has refused to provide the requested information, which has impeded the redemption process.

First Digital reiterated its financial stability, stating that it remains fully solvent and has more than enough ability to meet its obligations. The firm assured that each FDUSD is fully backed by cash and cash equivalents on a 1:1 basis, with the exact ISIN numbers of all reserve assets supporting FDUSD clearly listed in their audit report and available for public verification. The company is currently processing redemption requests as usual and has sought legal advice to protect its rights and reputation.