First Digital Labs has released a fresh attestation report to reaffirm the full backing of its stablecoin, FDUSD, following high-profile fraud allegations levelled by Tron founder Justin Sun.
The report made public on April 14 states that the entire circulating supply of FDUSD—amounting to 2.58 billion tokens—is fully backed by reserves of equal value. These reserves include over $1.74 billion in U.S. Treasury bills and $603 million held in overnight repurchase agreements. Additional funds are reportedly held in fixed deposits spread across various jurisdictions.
First Digital emphasized that all assets backing FDUSD are securely held in bankruptcy-remote accounts and are never co-mingled with company funds. The firm also highlighted that more than $1 billion worth of FDUSD has been redeemed without incident—positioning this as proof of its operational soundness.
The release comes in response to serious accusations by Justin Sun, who recently claimed that First Digital Trust—FDUSD’s overseer—embezzled nearly $500 million in client funds. According to Sun, the firm, in collaboration with partners including Dubai-based Aria DMCC, misled the stablecoin issuer into wiring funds to an unrelated entity via a fraudulent address switch. He alleges part of the funds ended up in a Hong Kong account labelled “Glass Door.”
Sun publicly named individuals he believed were involved and compared the incident to a crypto wallet exploit. He further held a livestream and met with Hong Kong regulators to present what he described as concrete evidence of international financial fraud.
First Digital Trust has entirely denied allegations against it and has filed a defamation lawsuit in Hong Kong’s High Court, seeking a retraction and financial damages. The company asserts that the claims are unfounded and damaging. Its fiat-backed stablecoin, FDUSD, managed by First Digital Trust and backed by major blockchain networks like Ethereum and Solana, has seen increasing adoption. Throughout the legal proceedings, First Digital Trust remains committed to transparency and will continue to publish third-party attestation reports to assure users of the stability of the stablecoin.
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