First Digital Belief has taken to X to defend its First Digital USD (FDUSD) stablecoin in opposition to assaults from cryptocurrency entrepreneur Justin Solar.
Within the assertion, First Digital claims that “every FDUSD is securely backed 1:1 by cash and cash equivalents” and provides that the agency “remains fully solvent.”
Moreover, First Digital denies “any and all claims of FDT being involved in a coordinated scheme or misappropriation of funds.”
First Digital is responding to Solar and Techteryx’s (the agency behind TrueUSD) claims that First Digital had misappropriated the overwhelming majority of TrueUSD reserves.
This portion of the reserves, presently totaling over $500 million, has been inaccessible to TrueUSD for an prolonged interval and was additionally the middle of a Securities and Change Fee lawsuit.
This go well with alleged that the reserves of TrueUSD have been largely invested in a extremely speculative fund, regardless of TrueUSD’s claims that it was “backed dollar-for-dollar.”
Learn extra: FTX knew Justin Solar tried to amass TrueUSD
Techteryx has subsequently filed a go well with in opposition to First Digital Belief and First Digital’s Chief Government, Vincent Chok, in a lawsuit that alleged that First Digital had inappropriately directed these investments.
After these investments have been made, the fund was unable or unwilling to service redemption requests from TrueUSD/Techteryx, and Solar reportedly had to supply a mortgage to TrueUSD.
It has additionally led Solar to make the accusation that First Digital is bancrupt.
This dispute has additionally spilled out of the courts, and no less than one Hong Kong legislator has commented on it.
Nonetheless, the assertion from First Digital features a totally different rationalization, noting that the fund that was invested in, ARIA, “has voiced its AML/KYC concerns regarding the buy-out deal between TrueCoin and Techteryx and the identification of the ultimate beneficial owner of Techteryx.”
Former TrustLabs CEO, Daniel Jaiyong An, has beforehand alleged that Solar tried to amass TrueUSD with the help of Can Solar, a lawyer who later labored with FTX.
Nonetheless, Techteryx has claimed in public, and in repeated statements to Protos, that Solar just isn’t the last word helpful proprietor of Techteryx or TrueUSD.
Nonetheless, Solar has been described as an “Asia Market Advisor” by TrueUSD and has described himself as a “partner market maker” for TrueUSD.
Moreover, CoinDesk reporting means that he supplied the mortgage to bail out TrueUSD.
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