First Digital Refutes Justin Sun’s Allegations: We Are Completely Innocent and Considering Legal Action
Cryptocurrency Industry Faces New Turmoil
First Digital (FDT) issued a statement today, officially responding to cryptocurrency tycoon Sun Yuchen’s accusations regarding its stablecoin reserve management. FDT emphasized that all allegations are “baseless and factually incorrect,” stating that it is seeking legal assistance to defend the company’s reputation.
Sun Yuchen’s Press Conference Sparks Controversy, FDT: Groundless Accusations
In the statement, First Digital pointed out that Sun Yuchen made “reckless and unfounded” allegations against FDT during a press conference held earlier, claiming that FDT was involved in fund misappropriation and improper operations. However, FDT rebutted this claim, insisting that it has never participated in any collusive conspiracy or fund misappropriation.
FDT Emphasizes its Role as a Neutral Third Party
According to the statement, FDT clarified that it acts solely as a neutral third-party agency, executing transactions only 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 are documented and traceable, fully compliant with regulations.
AML/KYC Issues Stalled, Techtyeryx Refuses to Cooperate
FDT added that the current fund redemption requests made by Techtyeryx have been questioned by ARIA (presumably a regulatory body), primarily based on anti-money laundering (AML) and know your customer (KYC) regulations. ARIA has requested Techtyeryx to provide ultimate beneficial ownership information, but as of now, Techtyeryx has failed to comply.
“Shifting Responsibility”? FDT Criticizes Techtyeryx and Sun Yuchen for Management Failures
FDT stated that Techtyeryx and Sun Yuchen are attempting to shift their responsibilities for stablecoin reserve management to FDT. In reality, both parties had complete decision-making authority to choose safer and more conservative investment strategies, yet opted for high-risk options. FDT believes this demonstrates clear negligence or a proactive assumption of risk, and responsibility should lie entirely with them.
Refuting Bankruptcy Rumors: FDT and FDUSD Assets Fully In Place
In response to accusations from Sun Yuchen and Techtyeryx that FDT is facing bankruptcy, FDT firmly denied these claims, asserting that such statements are malicious actions intended to damage its market reputation and credibility. FDT emphasized that its stablecoin FDUSD is fully collateralized with 1:1 cash and equivalent assets, and all reserve assets’ ISIN numbers and certification reports have been made public and are available for verification at any time.
FDT: Seeking Legal Means to Protect Its 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 processing all redemption requests and maintaining full payment capability as always,” FDT added.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices can be highly volatile, potentially resulting in the loss of your entire principal. Please carefully assess the risks.
