First Digital plans to take legal action against Tron founder Justin Sun.
FDUSD regained its dollar peg today after First Digital burned 87 million tokens.
The stablecoin lost its dollar peg yesterday when Justin Sun claimed First Digital is insolvent. The First Digital assured its users that FDUSD continues its 1:1 backing and its redemption channel is operating without any issues. It has completed the first batch of redemption requests and ensures that FDUSD regains its dollar peg. The First Digital proved its robust maintenance of the stablecoin with this move.
First Digital announced that the first few redemptions were processed after the recent FUD in its latest post on X. It also clarified that FDUSD remains fully backed 1:1 and all the redemption requests will continue to be executed without any complications.
Wu Blockchain reports that the First Digital burned around 87 million tokens in the last 24 hours as per cybersecurity firm PeckShield. The token burn helped FDUSD regain its dollar peg today. Even crypto live-price tracking platform CoinMarketCap also confirmed that FDUSD regained its peg.
First Digital Plans to Proceed Legally Over FDUSD’s Recent FUD
FDUSD (Source: CoinMarketCap)
Tron co-founder Justin Sun claimed that the FDUSD issuer is insolvent yesterday. The news quickly impacted the FDUSD market price and caused its depeg. First Digital didn’t take much time to respond, and it condemned Justin Sun’s accusations. It clearly stated that Tron’s TUSD has issues with solvency and First Digital is completely solvent.
FDUSD issuer also said it is going to pursue legal action to protect its rights and reputation. The firm even accused Justin Sun of doing a smear campaign to attack a competitor and his business.
First Digital Trust (FDT) issued an official statement referring to Justin Sun’s false claims. It called them baseless accusations and ensured the firm remains fully backed and solvent. The statement referred to Sun calling FDT insolvent as a malicious attempt to damage its reputation. It reiterated its plans to pursue legal action to protect its reputation.
