Latest news with #FDUSD
Yahoo
11-04-2025
- Business
- Yahoo
First Digital Trust Files Defamation Claim Against Justin Sun
Justin Sun's allegations that Hong Kong-based custodian First Digital Trust is insolvent have landed him in the cross-hairs of a defamation claim initiated by the company. First Digital's FDUSD stablecoin briefly de-pegged on April 3 after Sun claimed the company was "insolvent," though it has since virtually recovered, according to CoinDesk markets data. The writ of summons, the first step in a defamation claim, was filed late last week and requests the Hong Kong High Court to issue an injunction restraining Sun from making further statements on the matter. It also asks for an injunction requiring Sun to publish retractions. It also asks for the Court to issue an award for damages (though it doesn't specify how much) for "unlawful interference with the Plaintiff's contractual and business relationships" and "causing damage to the Plaintiff's business." In the time since Sun made his first claim on X that First Digital was insolvent, the Tron founder has since doubled down on the issue, holding a press conference late last week in Hong Kong alleging fraud and calling on the territory's regulators to reform rules around trusts. For its part, First Digital has posted examples of redemptions going through. A date for an initial court hearing has not been set. Sun has not yet filed a response, but posted on X that he "welcomes any legal process." A spokesperson for Sun had no comment on the matter. The case number is HCA 680 in Hong Kong's High Court.
Yahoo
07-04-2025
- Business
- Yahoo
Is Justin Sun Taking A Page From Binance's Playbook? How FDUSD Attack Mirrors Binance-FTX Feud
Tron founder Justin Sun has launched an attack against First Digital Trust. Sun's tactics in the ongoing spat mirror elements of the feud between Binance and FTX. At the center of the dispute is a $456 million misappropriation claim. While FTX may have well been on its way to its demise, many believe the death blow was Binance founder Changpeng 'CZ' Zhao's public vote of no confidence on the rival exchange. He publicly outlined plans to sell off FTX's native token over concerns about its health, triggering a fatal run on the now-defunct platform. Now, Binance, or at least a firm with close ties to it, may be on the receiving end of a similar attack. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Hasbro, MGM, and Skechers trust this AI marketing firm — . Throughout Wednesday and Thursday, Tron founder Justin Sun shouted to anyone who would listen that First Digital Trust was insolvent. First Digital Trust is the Hong Kong-based entity behind FDUSD, Binance's stablecoin of choice. 'First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets,' Sun asserted in his first missive on Wednesday. Despite Sun's failure to provide evidence, his claims were enough to trigger a rush of redemptions that saw FDUSD briefly lose its peg and trade as low as $0.87 in a debacle that takes the mind back to the beef between Binance and FTX. 'Remember when CZ publicly accused FTX of insolvency and triggered a bank run on the exchange?' One crypto community member wrote, adding, 'Justin is trying to run the same playbook Insanely malicious especially if this accusation turns out to be false. The emperor has no clothes.' Trending: If there was a new fund backed by Jeff Bezos offering a ? Unlike the FTX saga, First Digital Trust appears to be holding steady. For now, the market appears to have been appeased by data showing the firm processing redemptions and an attestation of its reserves. Sun's attack against First Digital Trust appears linked to a recent legal filing in Hong Kong by Techteryx, the issuer of the TrueUSD stablecoin, against First Digital Trust. This filing was first reported by CoinDesk. In the legal filing, Techteryx accuses First Digital Trust, which it had appointed as a fiduciary to manage its reserve, of misappropriating $456 million of its funds and failing to pay up when it needed it. Techteryx claims this situation forced it to obtain a bailout from Sun. Techteryx has long been rumored to be owned by Sun, a claim both parties vehemently Digital Trust has denied the claims alleged in the legal filing while labeling the filing and Sun's actions as an attempt to deflect from Techteryx's failings. According to a statement by First Digital Trust, it never moved or invested any of Techteryx's funds without the latter's express permission. The firm contended that it was the TUSD issuer's decision to make illiquid investments. It also contended that redemption of these funds hinged on AML/KYC concerns over Techteryx's beneficial owner, which it said the firm has refused to reveal to date. 'We reiterate that FDT remains fully solvent, and every FDUSD is securely backed 1:1 by cash and cash equivalents. The exact ISIN numbers of all reserves backing FDUSD are clearly outlined in our attestation report, which is publicly available for verification. We are processing redemption requests as usual. We are seeking legal advice and FDT will pursue legal action to protect it's [sic] rights and reputation,' First Digital Trust said. Read Next: Can you guess how many retire with a $5,000,000 nest egg? . Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Is Justin Sun Taking A Page From Binance's Playbook? How FDUSD Attack Mirrors Binance-FTX Feud originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
04-04-2025
- Business
- Yahoo
First Digital to 'Pursue Legal Action' Over Justin Sun Allegations as FDUSD Drops
FDUSD, the stablecoin issued by Hong Kong-based First Digital, has wobbled from its $1 price peg as investor concerns mounted over its reserves, though the company said Wednesday that it was "completely solvent." FDUSD has dropped to 0.87 against Tether's USDT stablecoin and 0.76 against Circle's USDC on Binance, the main exchange where FDUSD is listed. Notably, bitcoin (BTC) also nearly hit 100,000 against FDUSD. The token has stabilized around $0.98-$0.96 later, still trading below its supposed price anchor. The sudden price action happened as CoinDesk earlier Wednesday reported that some of the TrueUSD stablecoin's reserve assets were stuck in illiquid investments, according to filings. Tron founder Justin Sun bailed out the issuer company. First Digital Trust, a trust company affiliated to First Digital, was appointed to manage TUSD reserves. "First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets," Tron founder Justin Sun claimed in a Wednesday X post. First Digital refuted the allegations in an X post, saying that "First Digital is completely solvent" and "every dollar backing FDUSD is completely, secure, safe and accounted for with US backed T-Bills." "This is a typical Justin Sun smear campaign to try to attack a competitor to his business. As we told the reporter at CoinDesk, we have not yet had the opportunity to defend ourselves and instead of letting the TUSD matter be dealt with in court, Justin has instead resorted to a coordinated social media effort to try to damage FDUSD as a business competitor," the company said. "FDT will pursue legal action to protect its rights and reputation." FDUSD's latest monthly reserve report showed that the $2 billion of reserve assets were held mostly in U.S. Treasury bills and a lesser part in repo facilities and fixed deposits. Stablecoin analytics firm Bluechip told CoinDesk it gave FDUSD a C grade (on a scale from F as least safe to to A+ being safest) and expressed concerns over reserve assets being bankruptcy remote from the issuer company. "FDUSD appears to be backed by reasonably sound reserves. But we concluded that in case of bankruptcy, the reserves could be used to pay off the parent company's debt," Garett Jones, Bluechip's chief economist, said in a message. "It's hard to predict what would really happen in a crisis, but safer stablecoins do exist." UPDATE (Apr. 2, 17:58): Added analyst comment from Bluechip. Updated FDUSD price action.
