FDUSD custodian releases attestation report showing 1:1 backing despite Justin Sun’s $500M fraud claim

First Digital Labs has released a new attestation report confirming that its FDUSD stablecoin is fully backed despite ongoing fraud accusations from Tron founder Justin Sun.

According to the report published on Apr. 14, reserves of equal value, which include more than $1.74 billion in U.S. Treasury bills and $603 million held in overnight repurchase agreements, match First Digital USD’s (FDUSD) total supply of 2.58 billion tokens. Additional assets include fixed deposits across multiple jurisdictions.

The company has reaffirmed that all FDUSD reserves are held in bankruptcy-remote accounts and are never mixed with company funds. It added that over $1 billion worth of FDUSD has been redeemed to date without incident.

This comes just days after Justin Sun accused First Digital Trust of embezzling nearly $500 million in client funds. According to Sun, the firm, along with a network of partners including Dubai-based Aria DMCC, deceived the stablecoin’s issuer into wiring the funds to an unrelated entity. He claims the money was re-routed through a fraudulent address switch and partially deposited into a Hong Kong account called “Glass Door.”

Sun named several individuals allegedly involved and called the scheme a “major international financial fraud,” comparing it to a classic crypto wallet exploit. He also hosted a livestream and met with Hong Kong regulators to present evidence. First Digital Trust has denied all accusations and responded by filing a defamation lawsuit in Hong Kong’s High Court. 

The company is seeking to stop Sun from repeating the claims and is demanding retractions and damages. Earlier this month, the controversy caused the FDUSD to briefly lose its peg, falling as low as $0.87. At the time of writing, the stablecoin was trading at $0.99 after recovering. 

Issued by FD121 Limited and overseen by First Digital Trust, FDUSD has gained traction as a fiat-backed, regulated stablecoin. It is currently available on Ethereum (ETH), BNB Chain (BNB), Solana (SOL), and Sui (SUI).

As the legal dispute unfolds, First Digital Trust has said that it will continue publishing regular attestations and working with independent firms to provide transparency into its reserves.