FDUSD Stablecoin Fully Backed, Says First Digital Labs Amid Justin Sun Fraud Allegations
First Digital Labs has published a new attestation report confirming that its FDUSD stablecoin remains fully backed by reserves, even as it faces fraud accusations from Tron founder Justin Sun. Released on April 14, the report states that the total supply of 2.58 billion FDUSD tokens is matched by equivalent reserves, including more than $1.74 billion in U.S. Treasury bills and $603 million held in overnight repurchase agreements. Additional reserves are distributed across fixed deposits in multiple jurisdictions. The company emphasized that all assets are stored in bankruptcy-remote accounts, fully separated from corporate funds.
Over $1B in FDUSD Redeemed Without Issue, Says First Digital Labs
First Digital Labs also noted that more than $1 billion worth of FDUSD has been redeemed to date, with no reported issues—underscoring its claim that the stablecoin operates with full backing and transparency. The report follows recent allegations from Justin Sun, who claimed that First Digital Trust, the entity overseeing FDUSD, was involved in the misappropriation of nearly $500 million. Sun alleged that First Digital, in partnership with entities such as Dubai-based Aria DMCC, misled FDUSD’s issuer into wiring funds to an unrelated third party.
He said the funds were diverted through an altered wallet address and partially deposited into a Hong Kong bank account named “Glass Door.” Calling the incident a “major international financial fraud,” Sun shared names of those he believes were involved and presented his claims in a livestream and during meetings with Hong Kong regulators. In response, First Digital Trust has denied all allegations and filed a defamation lawsuit in Hong Kong’s High Court. The firm is seeking an injunction to prevent Sun from repeating the claims and is pursuing damages.
Earlier this month, the controversy briefly pushed FDUSD off its dollar peg, dropping it as low as $0.87. It has since recovered and was trading at $0.99 at the time of writing. FDUSD, issued by FD121 Limited and managed by First Digital Trust, is currently supported on Ethereum, BNB Chain, Solana, and Sui. The company says it will continue publishing regular attestations and collaborating with independent auditors to maintain transparency.
FDUSD Partners with Ledger to Enable Off-Exchange Stablecoin Settlements for Institutions
Last month, First Digital announced an integration with Ledger Enterprise TRADELINK to facilitate off-exchange settlements. The collaboration aims to serve global market makers, institutional investors, and asset managers by enabling them to use FDUSD for secure, compliant, and efficient digital asset trading while keeping assets in custody. Ledger’s TRADELINK platform is designed to reduce counterparty risk and streamline institutional settlement processes. Prior to this, the firm joined hands with FOMO Pay, a licensed Major Payment Institution in Singapore and Hong Kong, to add the stablecoin among FOMO Pay’s payment solutions on Ethereum and Solana.