On the evening of April 2, Tron founder Sun Yuchen issued a statement accusing the stablecoin issuer First Digital Trust (FDT) of facing insolvency and being unable to fulfill customer redemption obligations. Sun Yuchen also pointed out the regulatory oversight of Hong Kong and announced a press conference at 2 PM on April 3 to reveal details.
FDUSD price volatility
Market panic led to a sharp decline in the price of the stablecoin FDUSD issued by FDT. According to data from Binance exchange, the FDUSD/USDT trading pair fell from $1 to $0.87 within 30 minutes after the incident broke out, a decoupling of 13%. This affected the price of Bitcoin against FDUSD, which briefly reached $98,950, while Ethereum broke through $2,160.
Fell from $1 to $0.87 within 30 minutes after the incident broke out
Exchanges urgently verify reserves
As the main circulation platform for FDUSD, Binance quickly activated its response mechanism. Co-founder He Yi clarified, emphasizing that Sun Yuchen's allegations involve TUSD reserve disputes and are not directly related to FDUSD.
Binance's official announcement stated that independent auditing company Prescient Assurance verified on March 1 that the actual reserves amounted to $2,051,348,188.70, clearly exceeding the circulation at that time, in line with the 1:1 redemption guarantee, but did not disclose the absolute value of circulation.
Both parties involved exchanged fire across the airwaves
FDT issued an official statement in the early hours of April 3, refuting Sun Yuchen's allegations as 'malicious operations in commercial competition' and revealing the following facts:
100% of FDUSD reserves consist of U.S. Treasury bonds and cash, and ISIN codes can be verified in public reports
The current dispute originates from the TUSD reserves managed by FDT and is unrelated to the issuance of FDUSD
A law firm has been appointed to prepare to file a defamation lawsuit against Sun Yuchen
Details of the TUSD fund management dispute
According to documents disclosed by (CoinDesk), the core of the dispute is the $500 million reserve entrusted to FDT for management by Techteryx Ltd. (the issuer of TUSD). Sun Yuchen's legal team claims that FDT unilaterally transferred part of the funds to affiliated companies in the first quarter of 2024, resulting in insufficient TUSD reserve coverage. This case has entered judicial proceedings in the Hong Kong High Court, case number HCMP 567/2025.
