First Digital Belief has taken to X to defend its First Digital USD (FDUSD) stablecoin towards assaults from cryptocurrency entrepreneur Justin Solar.
Within the assertion, First Digital claims that “every FDUSD is securely backed 1:1 by cash and cash equivalents” and provides that the agency “remains fully solvent.”
Moreover, First Digital denies “any and all claims of FDT being involved in a coordinated scheme or misappropriation of funds.”
First Digital stands agency: Justin Solar’s baseless accusations received’t distract from Techteryx’s personal failures— our stablecoin FDUSD stays absolutely backed and solvent.
Learn our official assertion. pic.twitter.com/FndxX1mCCg
— First Digital (@FirstDigitalHQ) April 3, 2025
First Digital is responding to Solar and Techteryx’s (the agency behind TrueUSD) claims that First Digital had misappropriated the overwhelming majority of TrueUSD reserves.
This portion of the reserves, presently totaling over $500 million, has been inaccessible to TrueUSD for an prolonged interval and was additionally the middle of a Securities and Alternate Fee lawsuit.
This swimsuit alleged that the reserves of TrueUSD had been principally invested in a extremely speculative fund, regardless of TrueUSD’s claims that it was “backed dollar-for-dollar.”
Techteryx has subsequently filed a swimsuit towards First Digital Belief and First Digital’s Chief Govt, Vincent Chok, in a lawsuit that alleged that First Digital had inappropriately directed these investments.
After these investments had been made, the fund was unable or unwilling to service redemption requests from TrueUSD/Techteryx, and Solar reportedly had to offer a mortgage to TrueUSD.
It has additionally led Solar to make the accusation that First Digital is bancrupt.
This dispute has additionally spilled out of the courts, and at the very least one Hong Kong legislator has commented on it.
根據傳媒報道，今天有Web3企業申訴表示在港懷疑被信託公司非法轉移5億美元資產，我也在立法會回應了事件，並會見當時人申訴。不少行業朋友和傳媒向我查詢事件看法，我有以下幾點回應 :
1.… pic.twitter.com/Qm29sfsV1f
— Johnny Ng 吴杰庄 (@Johnny_nkc) April 3, 2025
Nevertheless, the assertion from First Digital features a totally different rationalization, noting that the fund that was invested in, ARIA, “has voiced its AML/KYC concerns regarding the buy-out deal between TrueCoin and Techteryx and the identification of the ultimate beneficial owner of Techteryx.”
Former TrustLabs CEO, Daniel Jaiyong An, has beforehand alleged that Solar tried to accumulate TrueUSD with the help of Can Solar, a lawyer who later labored with FTX.
Nevertheless, Techteryx has claimed in public, and in repeated statements to Protos, that Solar will not be the last word useful proprietor of Techteryx or TrueUSD.
He has, nevertheless, been described as an “Asia Market Advisor” by TrueUSD and has described himself as a “partner market maker” for TrueUSD.
Moreover, CoinDesk reporting means that he offered the mortgage to bail out TrueUSD.
