# First Digital Eyeing Legal Action Following Justin Sun Allegations

*Author: Bankless*
*Published: Apr 2, 2025*
*Source: https://www.bankless.com/de/read/first-digital-to-pursue-legal-action-over-justin-sun-allegations-as-fdusd-drops*

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First Digital denies insolvency claims by Justin Sun and plans legal action, addressing FDUSD's deviation from its $1 peg.

## **What’s the Scoop?**
- **FDUSD Depegs**: The Hong Kong-based stablecoin fell to $0.87 against Tether (USDT) and $0.76 against USDC on Binance before stabilizing at $0.98.
- **Justin Sun's Claims**: Tron founder Justin Sun alleged that First Digital Trust, which manages FDUSD reserves, is 'effectively insolvent' and warned users to secure their assets.
- **First Digital's Response**: First Digital refuted Sun's claims, asserting solvency with reserves backed by U.S. Treasury bills and accusing Sun of launching a smear campaign.
- **Legal Action**: First Digital intends to take legal action to protect its reputation and business against the allegations.

> The recent allegations by Justin Sun against First Digital Trust are completely false. This dispute is with TUSD and not with [$FDUSD](https://twitter.com/search?q=%24FDUSD&src=ctag&ref_src=twsrc%5Etfw). First Digital is completely solvent. Every dollar backing [$FDUSD](https://twitter.com/search?q=%24FDUSD&src=ctag&ref_src=twsrc%5Etfw) is completely, secure, safe and accounted for with US backed T-Bills. The…— First Digital (@FirstDigitalHQ) [April 2, 2025](https://twitter.com/FirstDigitalHQ/status/1907469378876215803?ref_src=twsrc%5Etfw)
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