First Digital Trust denies Justin Sun's claims, assuring FDUSD is backed by U.S. Treasury bills and legally protected - IcoHolder.

First Digital Trust (FDT), the issuer of the FDUSD stablecoin, has strongly refuted claims made by Justin Sun regarding its financial stability. In a statement posted on X, the firm labeled Sun's accusations as false and unrelated to its operations, clarifying that the dispute centers around TrueUSD (TUSD) and not FDUSD.

FDT stressed that it remains fully solvent and emphasized that its FDUSD stablecoin is securely backed by U.S. Treasury bills, with comprehensive details of its reserves clearly outlined in regular attestation reports. The company’s response comes after Sun, on April 2, alleged that First Digital Trust had mishandled nearly $456 million in TrueUSD reserves, leading to unauthorized investments and prompting Sun to intervene with emergency funding for Techteryx.

In its rebuttal, FDT described Sun's accusations as part of a "smear campaign" aimed at damaging its reputation and business. The firm accused Sun of trying to leverage social media to attack a competitor rather than allowing the TUSD dispute to be addressed through legal channels.

FDT reaffirmed the integrity of FDUSD’s reserves, noting that all funds are accounted for and verified with ISIN numbers. The company also stated its intention to pursue legal action to protect its reputation and defend against the allegations.