First Digital Confirms FDUSD Reserves After Fraud Claims by Justin Sun

Highlights:

• First Digital has confirmed that its stablecoin is fully backed by reserves and held in separate accounts.
• Justin Sun claims First Digital misused $500 million by redirecting funds through a changed wallet address.
• FDUSD briefly lost its dollar peg but recovered as First Digital denied all fraud claims and took legal action.

First Digital Labs has published a new attestation report showing that its stablecoin, FDUSD, remains fully backed by reserves. The report, released today, states that the total circulating supply of 2.58 billion tokens is matched by reserves of equal value. These include more than $1.74 billion held in U.S. Treasury bills and $603 million in overnight repurchase agreements. Additional reserves are placed in fixed deposits across several jurisdictions.

Company behind $FDUSD releases attestation, reaffirms 1:1 backing

First Digital Labs, a Hong Kong-based crypto custodian, stated that its stablecoin FDUSD is fully backed by cash and cash equivalents, ensuring 1:1 redemption with the U.S. dollar. In a post on X, the company…

— CoinNess Global (@CoinnessGL) April 14, 2025

The company confirmed that it keeps these assets in bankruptcy-remote accounts, completely separate from its operational funds. Investors have already redeemed more than $1 billion worth of FDUSD without any incident. This redemption volume, according to the report, supports the company’s claim that the stablecoin maintains full transparency and backing.

FDUSD is currently available on multiple chains, including Ethereum, BNB Chain, Solana, and Sui. The company added that it will continue releasing regular attestation reports and will work with third-party auditors to strengthen its reporting. The new report comes at a time when the project faces serious accusations from a high-profile figure in the crypto industry.

Tron’s Justin Sun Accuses First Digital of $500M Misappropriation

Justin Sun, founder of Tron, had made public allegations against First Digital Trust. He claimed that the firm was involved in the misappropriation of nearly $500 million in funds. According to Sun, First Digital, along with Dubai-based Aria DMCC and others, tricked the issuer of FDUSD into sending funds to a third party. Sun alleged that someone had altered a wallet address during the transaction and later deposited some of the funds into a Hong Kong account named “Glass Door.”

狸猫换太子：FDT（First Digital Trust）与Aria 的 5 亿美元盗窃案

在中国有个古老的传说，一位心狠手辣的妃子为了谋取私利，将刚出生的太子偷偷掉包为一只狸猫。这个典故如今被用作比喻，用来形容那些通过暗中掉包、以假乱真达到非法目的的骗局。

而 FDT…

— H.E. Justin Sun 🍌 (@justinsuntron) April 10, 2025

He described the case as a “major international financial fraud” and shared specific names of people he believes were part of the operation. He went on to present these claims in a livestream and held meetings in Hong Kong to show evidence. Sun stated that the involved parties used methods similar to known wallet exploits in the crypto space. He also accused the firm and its partners of misleading communication throughout the incident.

Shortly after the accusations surfaced, FDUSD temporarily lost its peg to the U.S. dollar and fell to as low as $0.87. However, it later recovered and is trading at $0.9977 at press time. In addition, the trading volume is up 12.18% to $2.18 billion.

Legal Action and Market Response

In response to these claims, First Digital Trust has denied all allegations and filed a defamation lawsuit in the High Court of Hong Kong. The company is seeking a court order to stop Justin Sun from repeating his statements. It is also asking for public retractions and financial damages.

⚖️ TRON founder Justin Sun is facing a defamation lawsuit from First Digital Trust after alleging the company was insolvent.

His claims briefly caused the $FDUSD stablecoin to de-peg on April 3—but it has since recovered.

📃 First Digital has filed a writ with the Hong Kong… pic.twitter.com/q42mIIEpjj

— Scott (@web3lecturer) April 10, 2025

Even as the legal process begins, the firm continues to operate. Last month, First Digital announced a partnership with Ledger Enterprise TRADELINK to enable off-exchange settlements. This move allows institutional clients to use FDUSD in a secure and efficient way. FOMO Pay in Singapore and Hong Kong has also added the stablecoin to its payment services.