Cryptocurrency sector faces new turmoil
First Digital (FDT) has issued a statement today in response to accusations made by cryptocurrency tycoon Justin Sun regarding its stablecoin reserve management, emphasizing that all allegations are “baseless and factually incorrect.” The company stated that it is seeking legal assistance to defend its reputation.
Justin Sun’s press conference ignites controversy; FDT: baseless accusations
In its statement, First Digital noted that during a press conference held earlier, Justin Sun publicly made “reckless and unfounded” accusations against FDT, claiming that the company was involved in fund misappropriation and improper operations. FDT refuted these claims, asserting that it has never participated in any coordinated conspiracy or fund misappropriation.
FDT emphasizes its straightforward role: executing trades only as instructed
According to the statement, FDT indicated that it acts as a neutral third-party agency, executing trades solely based on written instructions from Techtyeryx and its authorized representatives. FDT does not review the investment content and has never transferred or invested funds without authorization. All asset operations are documented and traceable, conducted in full compliance with regulations.
AML/KYC issues create bottleneck; Techtyeryx refuses to cooperate
FDT added that the current redemption request for funds by Techtyeryx has been questioned by ARIA (presumably a regulatory body), primarily based on anti-money laundering (AML) and know your customer (KYC) regulations. ARIA has requested that Techtyeryx provide information on the ultimate beneficial owners, but so far, Techtyeryx has been unable to supply this information.
“Shifting responsibility”? FDT criticizes Techtyeryx and Justin Sun for evading management errors
FDT stated that Techtyeryx and Justin Sun are attempting to shift their responsibility for stablecoin reserve management onto FDT. In reality, both parties had full decision-making authority to choose safer and more conservative investment strategies but opted for high-risk options instead. FDT believes this reflects either clear negligence or a proactive acceptance of risk, for which they should bear full responsibility.
Refuting bankruptcy rumors: FDT and FDUSD assets fully intact
In response to Justin Sun and Techtyeryx’s claims that FDT is facing bankruptcy, FDT firmly denied these allegations, stating that such remarks are malicious attempts to undermine its market reputation and credibility. FDT emphasized that its stablecoin FDUSD is fully backed 1:1 by cash and equivalent assets, and all reserve asset ISIN numbers and certification reports have been made public and are available for verification at any time.
FDT: seeking legal avenues to defend reputation
Finally, First Digital announced that it is currently seeking legal assistance and will take legal action to protect its rights and reputation. “We are processing all redemption requests and, as always, maintaining full solvency,” FDT added.
Risk Warning
Investment in cryptocurrencies involves high risks, and prices may fluctuate dramatically; you could lose your entire principal. Please assess risks carefully.