First Digital Trust has rejected Justin Sun's claims of insolvency, highlighting its financial stability and the full backing of its reserves.
Justin Sun's Allegations
On April 2, Justin Sun claimed that First Digital Trust was insolvent after mishandling nearly $456 million in TrueUSD reserves. According to him, the funds were diverted into unauthorized investments, prompting emergency funding from Techteryx.
Response from First Digital Trust
First Digital Trust clarified that the allegations involve TrueUSD, not FDUSD. The company stressed that FDUSD is fully backed by U.S. Treasury bills, as evidenced by their attestation reports. FDT confirmed its financial stability, stating that all funds are fully accounted for and verified by ISIN numbers.
Planned Actions
The company plans to take legal action to defend its rights and reputation. FDT asserts that Justin Sun's allegations are an attempt to undermine its business through coordinated social media efforts.
First Digital Trust continues to uphold its position, emphasizing the stability of its reserves and confidence in its financial soundness, despite Justin Sun's claims.
