Close Menu
Cryprovideos
    What's Hot

    Ethereum ETFs on a 15-Day Influx Streak: Is Pectra Bringing Institutional Capital?

    June 8, 2025

    Solana Teases a Breakout as Charts Present Stress Mounting – BlockNews

    June 8, 2025

    Pi Community Urged to Act as Customers Demand Token Transparency

    June 8, 2025
    Facebook X (Twitter) Instagram
    Cryprovideos
    • Home
    • Crypto News
    • Bitcoin
    • Altcoins
    • Markets
    Cryprovideos
    Home»Markets»FDUSD issuer refutes Justin Solar's insolvency allegations, calls it a ‘smear marketing campaign’
    FDUSD issuer refutes Justin Solar's insolvency allegations, calls it a ‘smear marketing campaign’
    Markets

    FDUSD issuer refutes Justin Solar's insolvency allegations, calls it a ‘smear marketing campaign’

    By Crypto EditorApril 2, 2025No Comments4 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email


    First Digital Belief (FDT) denied Justin Solar insolvency allegations and stated its stablecoin is absolutely backed with US Treasury payments.

    Solar had made the allegation earlier within the day in a social media submit, the place he stated the agency was bancrupt and unable to course of the redemption of its stablecoin, FDUSD.

    The information precipitated FDUSD to interrupt its peg and fall as little as $0.8726 earlier than partially recovering to $0.9870 as of press time. 

    The incident has raised questions in regards to the stablecoin’s solvency, the transparency of its issuer, and potential systemic implications for Binance, which holds a major quantity of the asset.

    Insolvency allegations

    First Digital emphasised that the dispute entails TrueUSD (TUSD), not FDUSD, and asserted that every one FDUSD reserves are absolutely backed and verifiable by means of US Treasury Payments.

    The corporate added that the precise ISIN numbers for the reserves are documented in its attestation report. Nonetheless, the TUSD issuer claims that FDT allegedly misplaced roughly $500 million in TUSD into dangerous investments.

    First Digital Belief added:

    “Each greenback backing $FDUSD is totally, safe, secure and accounted for with US backed T-Payments. The precise ISIN numbers of all the reserves of FDUSD are set out in our attestation report and clearly accounted for.”

    The agency labeled Solar’s statements as a “typical Justin Solar smear marketing campaign to attempt to assault a competitor to his enterprise.” It stated that somewhat than permitting the authorized dispute over TUSD to proceed in courtroom, Solar had launched a “coordinated social media effort to attempt to injury FDUSD as a enterprise competitor.”

    First Digital Belief stated it could pursue authorized motion to guard its rights and popularity. The corporate additionally plans to carry an “Ask Me Something” (AMA) occasion on X on April 3, proper after Justin Solar’s personal AMA.

    Tron founder Justin Solar’s public assertion urging customers to withdraw belongings tied to First Digital Belief was the first catalyst for the depeg. 

    He stated:

    “There are vital loopholes in each the belief licensing course of in Hong Kong and the interior danger administration of its monetary system. I urge regulators and legislation enforcement to take swift motion to handle these points and forestall additional main losses.”

    Solar added that Hong Kong’s popularity as a worldwide monetary heart was at stake on this case.

    Binance publicity below scrutiny

    In line with Conor Grogan, head of product enterprise operations at Coinbase, Binance holds roughly 94% of the FDUSD provide. This quantities to about $2.2 billion, with $1.5 billion originating from person deposits and $700 million from company funds. 

    He added that the FDUSD/BTC pair has traditionally been probably the most traded on the platform, making the depeg occasion a major operational concern.

    AP Collective founder Abhishek Pawa famous that FDUSD’s position inside Binance’s infrastructure expanded quickly after the platform started distancing itself from the Binance USD (BUSD) in early 2023. 

    That transfer got here in response to US regulatory stress when the Securities and Alternate Fee (SEC) and NYDFS labeled BUSD, issued by Paxos, a possible unregistered safety. 

    Binance step by step phased out BUSD incentives, buying and selling pairs, and promotional campaigns, shifting liquidity towards options comparable to FDUSD, USDT, and TUSD.

    The FDUSD disaster marks a stark distinction to the managed wind-down of BUSD. In contrast to BUSD, which was issued by a US-regulated entity, FDUSD was positioned as a extra compliant different aligned with Hong Kong’s regulatory framework. 

    Binance built-in FDUSD deeply into its ecosystem, making its sudden instability extra damaging in each reputational and operational phrases.

    In line with Abhi, whereas Binance’s FDUSD reserves reportedly keep 111% collateralization, the occasion has nonetheless forged doubt on the asset’s liquidity and redemption mechanisms.

    He added that the FDUSD’s instability additionally reopens regulatory questions for Binance. After the BUSD debacle, the platform emphasised its renewed dedication to compliance and transparency. 

    Nonetheless, the present episode could immediate renewed scrutiny of its due diligence and danger evaluation practices, notably relating to third-party stablecoin issuers.

    Talked about on this article
    FDUSD issuer refutes Justin Solar's insolvency allegations, calls it a ‘smear marketing campaign’FDUSD issuer refutes Justin Solar's insolvency allegations, calls it a ‘smear marketing campaign’
    Newest Alpha Market Report



    Supply hyperlink

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Pi Community Urged to Act as Customers Demand Token Transparency

    June 8, 2025

    Prime Newbie-Pleasant Cryptocurrency Exchanges to Use in 2025

    June 8, 2025

    NVIDIA Dynamo Introduces GPU Autoscaling and Kubernetes Automation

    June 8, 2025

    Circle's ‘Moon Touchdown Second’ to Speed up Wall Road's Stablecoin Embrace: Analysts – Decrypt

    June 8, 2025
    Latest Posts

    $1M Bitcoin Attainable. Adam Again Explains Why

    June 8, 2025

    Ethereum Prepares For A Parabolic Transfer – ETH/BTC Chart Alerts Sturdy Bullish Setup | Bitcoinist.com

    June 8, 2025

    Bitcoin can liquidate $15B in shorts with 10% BTC worth uptick — Knowledge

    June 8, 2025

    Michael Saylor Doubling Down on Bitcoin Value Prediction As BTC Holds $100,000 Stage – The Each day Hodl

    June 8, 2025

    Is $100K Bitcoin the Ceiling? Mike McGlone Thinks So

    June 8, 2025

    Bitcoin, Solana and Dogecoin Plunge as Circle Inventory Surges After IPO – Decrypt

    June 8, 2025

    Has Bitcoin been captured by politics and establishments?

    June 8, 2025

    BAY Miner’s cloud mining contracts assist buyers earn as much as $100,000 price of BTC per day

    June 8, 2025

    CryptoVideos.net is your premier destination for all things cryptocurrency. Our platform provides the latest updates in crypto news, expert price analysis, and valuable insights from top crypto influencers to keep you informed and ahead in the fast-paced world of digital assets. Whether you’re an experienced trader, investor, or just starting in the crypto space, our comprehensive collection of videos and articles covers trending topics, market forecasts, blockchain technology, and more. We aim to simplify complex market movements and provide a trustworthy, user-friendly resource for anyone looking to deepen their understanding of the crypto industry. Stay tuned to CryptoVideos.net to make informed decisions and keep up with emerging trends in the world of cryptocurrency.

    Top Insights

    XRP value chart hints at 75% features subsequent as SEC ends lawsuit in opposition to Ripple

    March 21, 2025

    Finest Crypto to Purchase Now? Panama Canal Could Undertake Bitcoin – CryptoDnes EN

    June 1, 2025

    Greatest Crypto Presale to Purchase Now – Danjo Capital Grasp Critiques Solaxy

    March 28, 2025

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    • Home
    • Privacy Policy
    • Contact us
    © 2025 CryptoVideos. Designed by MAXBIT.

    Type above and press Enter to search. Press Esc to cancel.