A new wave of controversy has emerged in the crypto circle. First Digital (FDT) today released a statement, formally responding to crypto tycoon Justin Sun's allegations regarding their stablecoin reserve management, emphasizing that all accusations are "completely unfounded and factually incorrect", and stating that they are seeking legal assistance to defend the company's reputation.
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ToggleJustin Sun's Press Conference Sparks Controversy, FDT: Baseless Accusations
First Digital stated in its statement that Justin Sun, in an earlier press conference, publicly made "reckless and unfounded" accusations against FDT, claiming that FDT was involved in fund misappropriation and improper operations. However, FDT refuted this claim, firmly asserting that it has never participated in any coordinated conspiracy or fund misappropriation.
FDT Emphasizes Pure Role: Only Executing Transactions as Instructed
According to the statement, FDT stated that as a neutral third-party agency, it only conducted transactions based on written instructions from Techtyeryx and its authorized representatives. FDT is not responsible for reviewing investment content and has never transferred or invested funds without authorization. All asset operations have written records that can be traced, and were completely executed according to regulations.
AML/KYC Issues Stalled, Techtyeryx Refuses to Cooperate
FDT added that the fund redemption request currently requested by Techtyeryx has been questioned by ARIA (apparently a regulatory body), primarily based on Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. ARIA requested Techtyeryx to provide ultimate beneficial owner information, but so far, Techtyeryx has failed to provide it.
'Shifting Responsibility'? FDT Criticizes Techtyeryx and Justin Sun for Evading Management Failures
FDT stated that Techtyeryx and Justin Sun are trying to shift their stablecoin reserve management responsibilities onto FDT. In reality, both parties had complete decision-making power to choose safer, more conservative investment strategies but still chose high-risk options. FDT believes this demonstrates clear negligence or a deliberate risk-taking behavior, and the responsibility should be entirely borne by them.
Refuting Bankruptcy Rumors: FDT and FDUSD Assets Still Fully in Place
Regarding the allegations by Justin Sun and Techtyeryx that FDT is facing bankruptcy, FDT firmly denied these claims, stating that such statements are malicious attempts to damage its market reputation and credibility. FDT emphasized that its stablecoin FDUSD is 1:1 backed by cash and equivalent assets, with all reserve asset ISIN numbers and certification reports publicly available for verification at any time.
FDT: Seeking Legal Means to Defend Reputation
Finally, First Digital stated that it is currently seeking legal assistance and will take legal action to protect its rights and reputation. "We are handling all redemption requests and maintaining full solvency as always," FDT added.
Risk Warning
Crypto investments carry high risks, with potentially significant price volatility, and you may lose all your principal. Please carefully assess the risks.
