Justin Sun has initiated a series of legal actions against the issuer of the FDUSD stablecoin, FDT, accusing them of embezzling $500 million from their customers. A new legal battle in the crypto world is about to begin.
Tron founder Justin Sun has filed a lawsuit against First Digital Trust (FDT), the issuer of the stablecoin FDUSD, accusing it of embezzling nearly $500 million in customer funds.
Sun communicated who met with a Hong Kong legislator to report on the case and submit relevant documentation to local judicial authorities and regulators. The alleged misappropriation centers on FDT's handling of client assets, with Sun claiming that these were misused.
The entrepreneur described the incident as "a massive international financial fraud involving traditional financial institutions and Web3 platforms," adding that it's time to reveal how "loopholes in the trust industry" are being exploited.
BUY TRONResponse from the Authorities and First Digital Trust
For his part, a Hong Kong legislator publicly confirmed his meeting with the plaintiffs and that he raised the matter in the Legislative Council. He emphasized the strength of Hong Kong's legal system, assuring international investors that they should not worry about an isolated incident, guaranteeing that "If the accusations are true, the authorities will take action."
On the other side, First Digital Trust responded to Sun's accusations, calling them "false information" and a "smear campaign." The company warned it will take legal action to defend its reputation and accused Sun of spreading false information. It also reiterated that FDUSD is fully backed 1:1 by cash and U.S. Treasury bills.
It is noteworthy that Binance is the exchange that holds the majority of the FDUSD supply, confirmed the stablecoin's 1:1 reserve in an update, showing $2,05 billion in reserves as of March 1.
FDUSD shudders
Despite this, the FDUSD market is shaken. On the one hand, news of the legal actions led to a brief depeg of FDUSD, which took the stablecoin's price to $0,91. At the same time, more than $200 million of market cap has been erased in less than 24 hours.
Although the stablecoin has now stabilized, the accusations between Sun and FDT do not stop, and they have started an "open war" of statements both in blogs, media and on X. And all this while Sun, at the same time, tries to save another stablecoin, TUSD, which has also been affected by the financial tremor within FDUSD.
In any case, everything seems to indicate that a new legal war is approaching in the crypto world, this time between Justin Sun and FDT, and the seismic impact it could have on the ecosystem remains to be seen.
Certificate
Main Cryptocurrencies Course
Basic levelBit2Me Academy brings you a new course in which you will learn everything you need about the most important cryptocurrencies that exist today.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
