FDUSD stablecoin depegs following claims made by Justin Sun

First Digital Trust has denied Justin Sun’s claims of liquidity issues, saying it is part of a “smear campaign” to hinder competition.

The First Digital US-dollar pegged stablecoin (FDUSD) depegged on April 2 following claims of insolvency from Tron network founder Justin Sun, who said that the issuer of the tokenized fiat equivalent, First Digital, is insolvent.

First Digital responded to the claims by assuring users that the issuer is completely solvent and said that the dispute is with TrueUSD (TUSD), another stablecoin. The firm wrote in an April 2 X post:

First Digital also indicated they would be taking legal action against Sun for making the claims on social media.

Read more