First Digital Labs has launched a brand new attestation report confirming that its FDUSD stablecoin is absolutely backed regardless of ongoing fraud accusations from Tron founder Justin Solar.
Based on the report printed on Apr. 14, reserves of equal worth, which embody greater than $1.74 billion in U.S. Treasury payments and $603 million held in in a single day repurchase agreements, match First Digital USD’s (FDUSD) complete provide of two.58 billion tokens. Further property embody mounted deposits throughout a number of jurisdictions.
The corporate has reaffirmed that every one FDUSD reserves are held in bankruptcy-remote accounts and are by no means blended with firm funds. It added that over $1 billion price of FDUSD has been redeemed up to now with out incident.
This comes simply days after Justin Solar accused First Digital Belief of embezzling practically $500 million in consumer funds. Based on Solar, the agency, together with a community of companions together with Dubai-based Aria DMCC, deceived the stablecoin’s issuer into wiring the funds to an unrelated entity. He claims the cash was re-routed by a fraudulent handle change and partially deposited right into a Hong Kong account known as “Glass Door.”
Solar named a number of people allegedly concerned and known as the scheme a “major international financial fraud,” evaluating it to a basic crypto pockets exploit. He additionally hosted a livestream and met with Hong Kong regulators to current proof. First Digital Belief has denied all accusations and responded by submitting a defamation lawsuit in Hong Kong’s Excessive Court docket.
The corporate is looking for to cease Solar from repeating the claims and is demanding retractions and damages. Earlier this month, the controversy precipitated the FDUSD to briefly lose its peg, falling as little as $0.87. On the time of writing, the stablecoin was buying and selling at $0.99 after recovering.
Issued by FD121 Restricted and overseen by First Digital Belief, FDUSD has gained traction as a fiat-backed, regulated stablecoin. It’s at the moment out there on Ethereum (ETH), BNB Chain (BNB), Solana (SOL), and Sui (SUI).
Because the authorized dispute unfolds, First Digital Belief has mentioned that it’ll proceed publishing common attestations and dealing with unbiased companies to offer transparency into its reserves.
