FDUSD is fully supported, First Digital Labs stated in the context of fraud allegations against Sun.

First Digital Labs has just released a new verification report confirming that their stablecoin FDUSD is still fully backed by reserves, even while facing fraud allegations from Tron founder Justin Sun. Released on April 14, the report states that the total supply of 2.58 billion FDUSD tokens is matched by equivalent reserves, including over 1.74 billion in U.S. Treasury bonds and 603 million held in overnight repurchase agreements. Additional reserves are allocated across fixed deposits in various jurisdictions. The company emphasizes that all assets stored in remote bankruptcy accounts are completely separated from the company's funds. More than 1 billion USD in FDUSD has been exchanged without any issues, First Digital Labs said. First Digital Labs also noted that over 1 billion FDUSD has been exchanged to date, with no issues reported - emphasizing their statement that this stablecoin operates with full backing and transparency. This report comes after recent allegations from Justin Sun, who claims that First Digital Trust, the entity overseeing FDUSD, is involved in the embezzlement of nearly 500 million USD. Sun accused that First Digital, in collaboration with organizations such as Aria DMCC based in Dubai, deceived the FDUSD issuer into transferring funds to an unrelated third party.

He stated that the money had been transferred to a changed wallet address and a portion sent to a Hong Kong bank account named "Glass Door." Calling this case the "large international financial fraud," Sun shared the names of those he believes are involved and presented his statement during a live broadcast and in meetings with regulatory authorities in Hong Kong. In response, First Digital Trust denied all allegations and filed a defamation lawsuit in the Hong Kong High Court. The company is seeking an injunction to prevent Sun from repeating the complaints and is pursuing damages.

Earlier this month, the controversy pushed FDUSD away from its dollar peg for a short time, causing it to drop to a low of 0.87 USD. Since then, it has recovered and is trading at 0.99 USD at the time of writing. FDUSD, issued by FD121 Limited and managed by First Digital Trust, is currently supported on Ethereum, BNB Chain, Solana, and Sui. The company stated that it will continue to publish regular attestations and collaborate with independent auditors to maintain transparency. FDUSD partners with Ledger to enable off-exchange Stablecoin payments for institutions. Last month, First Digital announced its integration with Ledger Enterprise TRADELINK to facilitate off-exchange payments. This cooperation aims to serve global market makers, institutional investors, and asset managers by allowing them to use FDUSD to trade digital assets safely, compliantly, and efficiently while still retaining their assets. The TRADELINK platform of Ledger is designed to reduce counterparty risk and streamline the payment process for organizations. Previously, the company partnered with FOMO Pay, a major licensed payment organization in Singapore and Hong Kong, to add this stablecoin to FOMO Pay's payment solutions on Ethereum and Solana.