The First Digital USD (FDUSD) stablecoin lost its peg to the US dollar on April 2, 2025, following a statement by TRON founder Justin Sun regarding the insolvency of First Digital Trust (FDT). At the time of the drop, the asset’s price fell below $0.91, although it later recovered to $0.99.
This is reported by Business • Media
Justin Sun’s Statement and FDT’s Response
In his comments, Justin Sun noted that the custodian of FDUSD, First Digital Trust, was unable to fulfill client redemption requests due to its insolvency. He also emphasized that there are several serious issues in the licensing process for trusts in Hong Kong, as well as in the internal risk management of the financial system. Sun urged regulators and law enforcement to take urgent action to address these issues to prevent further significant losses.
“First Digital Trust is effectively already insolvent. If you have any ties with them, sever them immediately to protect your assets,” Sun stressed.
Meanwhile, the First Digital Trust team denied Justin Sun’s claims, calling them false. They emphasized that the company remains solvent and that “this dispute concerns TUSD, not FDUSD.” FDT representatives assured that every dollar backing FDUSD is completely safe and held in US government bonds.
FDUSD Reserves and History of Fluctuations
The FDT team also announced an AMA session to answer questions regarding the situation. According to information from Binance, as of March 1, 2025, FDUSD reserves exceeded $2 billion, which were invested in US government bonds and overnight deposits.
Interestingly, this is not the first time FDUSD has lost its peg to the dollar. On March 5, 2024, the asset had already shown a price drop below $0.92.