Stablecoin News: FDUSD Proves 1:1 Backing Amid $500M Justin Sun Fraud Clash

First Digital Trust has published a new attestation report confirming that the FDUSD stablecoin is fully backed by reserves. The report, released on April 14, shows that FDUSD’s total supply of 2.58 billion tokens is supported by assets including $1.74 billion in U.S. Treasury bills and $603 million in overnight repurchase agreements.

The firm stated that additional assets are placed in fixed deposits across different jurisdictions. All reserves are kept in bankruptcy-remote accounts and are not mixed with the company’s own funds. According to First Digital Trust, more than $1 billion worth of FDUSD has been redeemed without any issues so far.

The latest $FDUSD attestation reports are now available on our website:https://t.co/IpSw33lpGQ

At @FirstDigitalHQ, our commitment to financial transparency, accountability and client asset protection remains unwavering. To reinforce this commitment, we appoint two reputable…

— First Digital Labs (@FDLabsHQ) April 14, 2025

Fraud Allegations by Justin Sun

The attestation comes amid fraud accusations from Tron founder Justin Sun. Sun claims that First Digital Trust, along with partners including Aria DMCC, embezzled close to $500 million in client assets. He alleges the funds were redirected to an unrelated account through a fraudulent address change and partially deposited into a Hong Kong account named “Glass Door.”

Sun said he met with Hong Kong lawmaker Johnny Wu to report the case and submitted related documents to regulators. He described the situation as a major financial fraud involving traditional finance and Web3 companies. Sun also hosted a live broadcast to discuss what he called irregularities in First Digital Trust’s handling of client assets.

根據傳媒報道，今天有Web3企業申訴表示在港懷疑被信託公司非法轉移5億美元資產，我也在立法會回應了事件，並會見當時人申訴。不少行業朋友和傳媒向我查詢事件看法，我有以下幾點回應 :

1.… pic.twitter.com/Qm29sfsV1f

— Johnny Ng 吴杰庄 (@Johnny_nkc) April 3, 2025

Legal Action and Company Response

First Digital Trust has denied all accusations and has filed a defamation lawsuit against Sun in Hong Kong’s High Court. The firm seeks to prevent further public statements from Sun and is requesting retractions and compensation.

The company stated it will continue releasing independent attestation reports to maintain transparency. It also reaffirmed its position that FDUSD reserves remain fully backed and that customer redemptions have continued without any disruption.

FDUSD’s Price Movement and Ongoing Oversight

After the allegations were made public, FDUSD briefly lost its peg, falling to $0.87. The price has since stabilized and was trading at $0.99 at the time of the report. The stablecoin’s recovery followed the release of the attestation report and public reassurances from First Digital Trust.

FDUSD is issued by FD121 Limited and overseen by First Digital Trust. It is available on Ethereum, BNB Chain, Solana, and Sui blockchains. The company said it remains committed to publishing regular attestations and working with independent auditors to ensure transparency.

Hong Kong lawmaker Johnny Wu confirmed that he had received the complaint and submitted it to the appropriate authorities. Wu added that if wrongdoing is proven, enforcement agencies would take action under Hong Kong’s legal framework.

The post Stablecoin News: FDUSD Proves 1:1 Backing Amid $500M Justin Sun Fraud Clash appeared first on Coinfomania.