First Digital denies allegations, threatens legal action
First Digital Belief, the issuer of the FDUSD stablecoin, has refuted latest allegations by Justin Solar.
First Digital Belief labeled the allegations as false and unrelated to its operations. In an announcement on X, FDT clarified that the controversy includes TrueUSD, not FDUSD (FDUSD).
“This dispute is with TUSD and never with $FDUSD. First Digital is totally solvent,” FDT posted.
The agency emphasised that FDUSD is totally backed by U.S. Treasury payments, with reserve particulars transparently outlined in its attestation studies.
Justin Solar’s insolvency claims
On April 2, Justin Solar claimed that First Digital Belief was bancrupt after mismanaging practically $456 million in TrueUSD reserves.
Authorized filings revealed that the funds have been diverted into unauthorized investments, prompting Solar to supply emergency funding to Techteryx.
“This can be a typical Justin Solar smear marketing campaign to assault a competitor,” FDT said, accusing Solar of trying to wreck its enterprise by means of a coordinated social media effort quite than permitting the TUSD dispute to be resolved in courtroom.
FDT reaffirmed its solvency and the safety of FDUSD reserves, including that every one funds are accounted for with verifiable ISIN numbers.
The corporate additionally introduced plans to take authorized motion to defend its rights and popularity.
