In a recent announcement, First Digital, the issuer of the FDUSD stablecoin tied to the US dollar, firmly rejected allegations from Justin Sun, calling them entirely unfounded. The company emphasized that accusations linking FDT to any coordinated schemes or misuse of funds have no basis in reality, asserting that its transactions are conducted strictly under the guidance of Techtery and its authorized agents.
What is First Digital’s Role in Fund Management?
First Digital clarified that it does not make independent investment choices or evaluations regarding fund management. All actions taken are carried out according to precise written instructions from Techtery, with documentation available for verification when needed.
Is This a Targeted Attack on First Digital?
The company accused Justin Sun and Techtery of attempting to connect them with a conspiracy designed to evade accountability. First Digital reiterated that management of reserves is the sole responsibility of Techtery, and emphasized its authority in setting risk parameters, although safer investment options have not been pursued.
First Digital assured stakeholders that FDUSD remains secure and fully backed. An audit confirming the reserves’ integrity validated that all assets are accounted for with ISIN numbers. The firm also noted that redemption requests are being honored as normal without liquidity issues. Legal actions have been announced to defend its integrity and that of FDUSD against these claims.
Following the allegations, FDUSD temporarily fell below its dollar peg, dropping to $0.9135. However, it has since recovered significantly, trading at $0.9951 as of this report.
- First Digital firmly denies Justin Sun’s accusations.
- All transactions follow Techtery’s direct instructions.
- FDUSD is fully backed with reserves and remains stable.
- Legal action will be pursued against defamation.
The situation illustrates the fragility of trust in digital assets, and First Digital’s proactive stance aims to reassure stakeholders while addressing the reputational damage from these claims.
