First Digital Trust Defends FDUSD, Plans Legal Action Against Justin Sun

First Digital Trust (FDT) has vigorously defended the reserves of its stablecoin, FDUSD, in response to allegations made by Justin Sun. The controversy revolves around Sun's claims that FDT is insolvent, which FDT has firmly denied. In an official statement, FDT characterized Sun's remarks as a deliberate attempt to discredit a competitor, aiming to erode trust in FDUSD. FDT clarified that the dispute is solely related to TUSD and does not involve FDUSD, asserting that the company is financially stable with full solvency. According to FDT, each FDUSD is fully backed by reserves.

The situation intensified when FDT announced its intention to take legal action against Sun. This decision follows Sun's allegations that FDT's trust arm is insolvent, a claim that FDT has strongly refuted. The legal action is viewed as a proactive measure to safeguard the integrity of FDUSD and to counter what FDT perceives as unfounded accusations. FDT's decision to pursue legal recourse demonstrates its dedication to maintaining the stability and reliability of its stablecoin.

Sun's allegations have been met with a strong defense from FDT, which has underscored its financial stability and the full backing of FDUSD reserves. FDT's response includes a detailed refutation of Sun's claims, emphasizing that the dispute is confined to TUSD and does not impact FDUSD. FDT's assertion of full solvency and the backing of each FDUSD by reserves aims to reassure users and investors about the stability of the stablecoin.

The planned legal action by FDT against Sun marks a significant development in the ongoing dispute. By taking legal steps, FDT aims to directly address the allegations and protect the reputation of FDUSD. The company's proactive approach reflects its confidence in its financial position and its commitment to transparency and accountability. The legal action is expected to provide clarity on the allegations and reinforce the stability of FDUSD in the market.

In summary, First Digital Trust has defended FDUSD against Justin Sun's accusations, asserting the stablecoin's financial stability and solvency. The company has announced plans for legal action to counter what it describes as a smear campaign. The dispute, which involves TUSD and not FDUSD, highlights the importance of transparency and accountability in the stablecoin market. FDT's response underscores its commitment to maintaining the trust and stability of FDUSD, despite the allegations made by Sun.