First Digital, the Hong Kong-based custodian and issuer of the FDUSD stablecoin, has publicly refuted allegations of fraud and misappropriation of funds. This follows accusations leveled by Tron founder Justin Sun, who alleged a $500 million shortfall in reserves. In a statement released via their official X account, First Digital asserted that FDUSD maintains reserves "exceeding 100%" and has undergone verification by two independent audit firms. The company further emphasized the segregation of customer assets from company holdings, ensuring protection. According to First Digital, they have successfully processed approximately $1 billion in redemptions to date, demonstrating the stability and liquidity of FDUSD. This swift response aims to reassure investors and maintain confidence in the stablecoin amidst ongoing market scrutiny. The company is clearly aiming to demonstrate financial transparency and adherence to regulatory standards. ```