First Digital redeems $26M after FDUSD depeg, dismisses Sun insolvency claims

FDUSD depegged after Justin Sun accused First Digital of insolvency, but the firm has since redeemed nearly $26 million in stablecoins.

First Digital has redeemed almost $26 million in stablecoin withdrawals after its FDUSD token briefly lost its US dollar peg following allegations of insolvency by Tron founder Justin Sun.

First Digital USD (FDUSD) depegged on April 2, briefly falling as low as $0.87 after Sun claimed that First Digital was insolvent.

On April 4, Sun doubled down on his allegations, claiming the firm transferred over $450 million of customer funds to a Dubai-based entity and that it violated Hong Kong securities regulations.

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