First Digital Plans Legal Action Against Justin Sun Amid FDUSD Price Drop
FDUSD, a stablecoin from First Digital, has fallen below its $1 peg amid concerns over reserves. The token dropped to 0.87 against USDT and 0.76 against USDC on Binance, later stabilizing around 0.98.
Key points:
- Investor concerns arose after reports indicated some TrueUSD reserves were tied in illiquid assets.
- Justin Sun provided a bailout for First Digital, which manages TUSD reserves through First Digital Trust.
- Sun claimed First Digital Trust is insolvent and urged users to secure their assets.
- First Digital denied these claims, asserting it is solvent and that its reserves are fully backed by U.S. Treasury bills.
- The company accused Sun of launching a smear campaign and plans legal action.
- FDUSD's reserve report indicates $2 billion held mainly in U.S. Treasury bills.