First Digital redeems $26M after FDUSD depeg, dismisses Sun insolvency claims

FDUSD depegged after Justin Sun accused First Digital of insolvency, but the firm has since redeemed nearly $26 million in stablecoins.

First Digital Trust (FDT) has redeemed almost $26 million in stablecoin withdrawals after its FDUSD token briefly lost its US dollar peg following allegations of insolvency by Tron founder Justin Sun.

First Digital USD (FDUSD) briefly depegged on April 2, falling as low as $0.87 after Sun claimed that First Digital was insolvent.

On April 4, Sun doubled down on his allegations, claiming the firm had transferred over $450 million of customer funds to a Dubai-based entity and that it violated Hong Kong securities regulations.

Read more