FDUSD Briefly Loses Peg; Justin Sun Speaks Out

More drama in cryptoland, and once again, a stablecoin is involved.

Tron founder, Justin Sun, recently took to X to call First Digital Trust, issuer of the FDUSD stablecoin, “already insolvent.”

In a follow-up post, Sun tweeted, “I met with Hong Kong Legislative Council member Johnny Wu and reported the embezzlement case involving nearly $500 million of client reserve funds by First Digital Trust (FDT). We have submitted relevant materials to the regulatory and judicial authorities. We are fully confident that the funds will be recovered and that those responsible for the misappropriation will be held legally accountable.”

FDUSD pushed back on this, writing, “The recent allegations by Justin Sun against First Digital Trust are completely false. This dispute is with TUSD and not with $FDUSD. First Digital is completely solvent.”

As of writing, the FDUSD peg is sitting at around 0.9966, having moved much closer back to its peg than earlier, when the accusations first surfaced. We’ll continue to follow this story and provide updates as they develop.