Tron founder Justin Sun has initiated a legal process against First Digital Trust, the issuer behind the FDUSD stablecoin, accusing it of embezzling nearly $500 million in client funds. On a Apr.

FDUSD, the sixth-largest stablecoin (market cap $2.5 billion), saw a significant depeg yesterday morning to $0.91. The peg has since recovered, though FDUSD suffered a market cap loss of about $200m.

After the temporary detachment from the dollar of the stablecoin FDUSD, Wintermute quickly transferred 75 million dollars in tokens, taking advantage of an arbitrage opportunity that may have generated over 3 million dollars in profit. Let's see all the details in this article.

FDUSD regained its peg after a brief dip, following accusations that caused a market panic and a withdrawal of funds.

Market makers' blockchain transactions point to a potential $3 million arbitrage opportunity related to the depegging of the FDUSD stablecoin.The First Digital US dollar-pegged stablecoin (FDUSD) depegged on April 2, after Tron founder Justin Sun claimed that the stablecoin issuer was insolvent. Market marker Wintermute transferred over 75 million FDUSD tokens back to First Digital within a day since the stablecoin depegged to $0.87.

Recently, Tron founder Justin Sun stepped in with emergency funding for TrueUSD (TUSD) after its issuer, Techteryx, faced a $456 million liquidity crisis due to illiquid investments. Though Sun claimed he was just an advisor and not directly involved with TrueUSD, he provided crucial financial support during the crisis.

The sudden dip caused panic among investors, leading to a 13% drop in value. During this time, the Wintermute trading firm swiftly withdrew 31.36 million FDUSD from Binance.

Sun said at a press conference that the current laws contain systemic loopholes.

First Digital USD (FDUSD) crashed and de-pegged as low as 13% after Justin Sun claimed its issuer, First Digital Trust, did not hold sufficient funds to back the outstanding stablecoins. Soon after that, FDUSD returned close to its $1 peg.

Justin Sun provided emergency funding to TrueUSD after $456 million in reserves were allegedly misappropriated that caused a major liquidity crisis.

FDUSD, a stablecoin issued by Hong Kong-based First Digital, briefly lost its $1 peg this week, sparking investor concern over its reserves. Prices dropped as low as $0.87 against Tether (USDT) and $0.76 against Circles USDC on Binance, its main trading platform.

Binance has reaffirmed the accuracy of FDUSD's reserve attestation for February, following concerns sparked by a brief de-pegging event. In an Apr.

A prominent stablecoin depegged from the US dollar Wednesday morning after it was alleged that its Hong Kong-based issuer was bankrupt In a new thread on the social media platform X, crypto billionaire and Tron (TRX) founder Justin Sun urged his followers to “take immediate action” to protect any assets they held in FDUSD, a

Tron founder Justin Sun provided emergency funding to stabilize TrueUSD after its issuer faced a $456 million liquidity crisis due to illiquid investments, ensuring continued redemptions for users amidst allegations of mismanagement. The post Tron Founder Justin Sun Provides Emergency Funding to Stabilize TUSD Amid Reserve Crisis appeared first on Cryptonews.

Tron founder Justin Sun accused First Digital Trust of being insolvent regarding its TUSD stablecoin. This prompted another FDUSD, another asset from the same company, to temporarily depeg to a low of $0.87.

According to a Hong Kong court filings, Justin Sun stepped in to bail out Techteryx's TrueUSD (TUSD) stablecoin after it saw nearly half a billion dollars of its reserves rendered illiquid. The issue started after Techteryx acquired TrueUSD from TrueCoin in December 2020.

A stablecoin called First Digital USD lost its dollar peg after Tron founder Justin Sun claimed that its issuer is effectively insolvent.

The following article is adapted from The Block's newsletter, The Daily, which comes out on weekday afternoons.

First Digital's stablecoin, FDUSD, slipped almost 10% today, falling below its intended peg after news broke of a lawsuit targeting the company's CEO. Adding fuel to the fire, Tron founder Justin Sun took to X on Wednesday, declaring First Digital “insolvent.

First Digital Trust (FDT) denied Justin Sun insolvency allegations and said its stablecoin is fully backed with US Treasury bills. Sun had made the allegation earlier in the day in a social media post, where he said the firm was insolvent and unable to process the redemption of its stablecoin, FDUSD.

First Digital Trust (FDT) denied Justin Sun insolvency allegations and said its stablecoin is fully backed with US Treasury bills. Sun had made the allegation earlier in the day in a social media post, where he said the firm was insolvent and unable to process the redemption of its stablecoin, FDUSD.

TL;DR Justin Sun warned about potential financial issues at First Digital Trust, pointing to fund mismanagement and difficulties in processing redemptions. FDUSD dropped 9% following Sun's statements, losing $130 million in market capitalization. First Digital denied the allegations and announced legal action. Binance holds $2.

The First Digital US-dollar pegged stablecoin (FDUSD) depegged on April 2 following claims of insolvency from Tron network founder Justin Sun, who said that the issuer of the tokenized fiat equivalent, First Digital, is insolvent.First Digital responded to the claims by assuring users that the issuer is completely solvent and said that the dispute is with TrueUSD (TUSD), another stablecoin. The firm wrote in an April 2 X post: "Every dollar backing FDUSD is completely, secure, safe and accounted for with US backed T-Bills.

The First Digital US dollar-pegged stablecoin (FDUSD) depegged on April 2 following claims of insolvency from Tron network founder Justin Sun, who said that the issuer of the tokenized fiat equivalent, First Digital, is insolvent.First Digital responded to the claims by assuring users they are completely solvent and said that FDUSD is still fully backed and redeemable with the US dollar on a 1:1 basis. The firm also said that the ongoing dispute is with TrueUSD (TUSD), another stablecoin.

The stablecoin deviated from its price peg as Tron founder Justin Sun claimed that First Digital Trust is "effectively insolvent," a characterization the company pushed back on.

Justin Sun, the founder of Tron, stepped in to provide crucial financial support to TrueUSD (TUSD) following a $456 million reserve crisis that left the stablecoin's reserves in a state of limbo. According to court documents filed in Hong Kong, a series of financial missteps and unauthorized investments by TUSD's fiduciary led to a significant

Techteryx is suing First Digital for allegedly redirecting nearly half a billion dollars worth of TUSD reserves into illiquid investments.

Tron founder Justin Sun has publicly declared that First Digital Trust, a Hong Kong-based fiduciary, is insolvent and unable to fulfill client fund redemptions.

The incident highlights vulnerabilities in stablecoin reserve management, emphasizing the need for stricter oversight and transparency in the sector. The post Justin Sun quietly rescues TUSD after $456 million reserves become illiquid appeared first on Crypto Briefing.

Techteryx says it was the victim of what it called "large-scale fraud" rendering TUSD's stablecoin reserves stuck in illiquid investments made without its permission

First Digital announced a partnership with Ledger Enterprise Tradelink to enable institutions to leverage FDUSD for off-exchange settlements. The post FDUSD Reveals Strategic Integration With Ledger's Off-Exchange Trading Network appeared first on Cryptonews.

TL;DR FDUSD-FOMO Pay Partnership: First Digital USD (FDUSD) partners with FOMO Pay to enable on-chain stablecoin payments for merchants on Ethereum and Solana blockchains. Merchant Integration: Over 200,000 merchants across Asia will now accept FDUSD, leveraging faster settlement times and reduced fees.

First Digital, the group behind the FDUSD stablecoin, has joined hands with FOMO Pay, a licensed Major Payment Institution in Singapore and Hong Kong, to add the stablecoin to FOMO Pay's payment solutions on Ethereum and Solana. The post FDUSD Integrates with FOMO Pay on Ethereum and Solana, Enables Payments to Merchants appeared first on Cryptonews.

First Digital USD (FDUSD), a multi-blockchain audited stablecoin pegged to the U.S. dollar, enhances its availability on Binance (BNB), the largest crypto exchange by trading volume and user count. Traders are invited to deposit and withdraw FDUSD paying no fees.

FDUSD, a 1:1 USD-backed stablecoin, expands to Solana blockchain, integrating with top DeFi protocols amid growing demand for stable digital assets.

Historically, Tether's USDT has dominated the cryptocurrency market as the primary source of crypto liquidity. However, data cited by on-chain tools have noticed an apparent shift in trader preferences as USDT loses some of its market grip to Circle's USDC and Binance's FDUSD.

Binance introduces new APR rewards, offering 16.2% for FDUSD locked products and 7% for EURI flexible products during a limited promotion period.

Binance launches a promotion offering up to 7 days of interest-free loans for users borrowing USDT, FDUSD, or USDC through team formation.

Heavily backed by the Binance exchange, the FDUSD stablecoin was previously available on Ethereum, BSC, and Sui networks.

First Digital Labs has announced the expansion of its FDUSD stablecoin onto the Solana blockchain, aiming to bring faster, lower-cost transactions to users worldwide. The announcement was made during Binance Blockchain Week, underscoring First Digital's strategy to increase the utility of FDUSD across multiple blockchain networks.

Hong Kong-based stablecoin issuer First Digital Trust said Thursday it is expanding its FDUSD token to the Solana network.

Explore the key differences and similarities between USDT, USDC, and FDUSD stablecoins, their market impact, and why BNB Chain is the ideal platform for these digital assets.

Binance introduces FDUSD Fixed Rate Locked Products offering a 16.2% APR. The promotion runs from October 23 to November 5, 2024, on a first-come, first-served basis.

Binance launches a promotional offer for FDUSD Locked Products, promising a fixed 15.9% APR during a limited subscription period from October 9 to October 22, 2024.

The SEC has settled the allegations and ordered a combined penalty of $700,000. The lawsuit was filed at the U.S. District Court for the Northern District of California.

TrustToken and TrueCoin, the entities behind the TrueUSD (TUSD) stablecoin, last week reached a settlement with the US Securities and Exchange Commission (SEC) over allegations of fraudulent and unregistered sales of investment contracts. The companies have agreed to pay a combined total of $700,000 in penalties and disgorgement without admitting or denying the SEC's findings.

The SEC accused TrustToken and TrueCoin of investing 99% of the reserves backing TUSD in a risky fund with redemption issues.

Binance launches Dubai Escape promotion, offering up to 60,000 FDUSD in token vouchers and a 2,000 FDUSD travel voucher for traders in MENA and South Asia regions.