First Digital USD (FDUSD) Depegs After Justin Sun Alleges Firm Is ‘Insolvent’ and Not Fulfilling Redemptions

First Digital USD (FDUSD) Depegs After Justin Sun Alleges Firm Is ‘Insolvent’ and Not Fulfilling Redemptions


A prominent stablecoin depegged from the US dollar Wednesday morning after it was alleged that its Hong Kong-based issuer was bankrupt

In a new thread on the social media platform X, crypto billionaire and Tron (TRX) founder Justin Sun urged his followers to “take immediate action” to protect any assets they held in FDUSD, a stablecoin managed by First Digital Trust (FDT).

Sun also called for regulators to step in and take action to prevent further losses and save Hong Kong’s reputation as a financial power.

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“First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets.

There are significant loopholes in both the trust licensing process in Hong

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