$FDUSD has experienced a drop in its value recently, losing its parity with the US dollar. This situation is due to insolvency allegations directed at First Digital Trust (FDT), the issuing entity of FDUSD, by Justin Sun, founder of Tron. Sun claimed that FDT failed to redeem $501 million in TUSD reserves, raising concerns about the company's solvency and causing FDUSD to fall by up to 5% from its parity with the dollar.

In response to these allegations, First Digital Trust assured that every dollar backing FDUSD is completely safe and backed by US Treasury bonds. Additionally, the company indicated its intention to take legal action.