Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Stablecoins Associated with First Digital Trust (FDT) Temporarily Depegs as Justin Sun Warns of Company’s Insolvency 

Share This Post

Stablecoins Associated with First Digital Trust (FDT) Temporarily Depegs as Justin Sun Warns of Company’s Insolvency

The post Stablecoins Associated with First Digital Trust (FDT) Temporarily Depegs as Justin Sun Warns of Company’s Insolvency  appeared first on Coinpedia Fintech News

In a surprising turn of events, Justin Sun, a prominent figure within the Tron (TRX) ecosystem, has revealed that First Digital Trust (FDT), a tech-driven financial institution based in Hong Kong, is effectively insolvent and unable to cover its obligations. In an X post on April 2nd during the late Western financial markets, Sun noted that FDT has a significant loophole in the internal risk management of its financial systems and the trust licensing process in Hong Kong.

“I urge regulators and law enforcement to take swift action to address these issues and prevent further major losses. Hong Kong’s reputation as a global financial center is at stake, and similar financial fraud incidents must never happen again,” Sun noted

Meanwhile, Sun will issue a press conference regarding the unfolding crisis on April 3. 

Market Impact

Following the announcement, FDUSD, fiat-backed stablecoins that are directly supported by Binance exchange dropped over 2 percent to trade about 97 cents at the time of this writing. The mid-cap stablecoin, with a fully diluted valuation of about $2.54 billion and a daily average trading volume of around $6.9 billion, depegged for the first time to as low as 91 cents, before Yi He clarified the air.

According to He, co-founder of Binance, Sun is suing TrueUSD (TUSDsuing TrueUSD (TUSD), which has an FDV of about $495 million and a 24-hour trading volume of about $56 million. However, He noted that Binance is following up on the matter to ensure the safety of the customers.

“No one knew that Brother Sun would tweet in the middle of the night, but Binance launched the stablecoin of launchpool. We will check the funds regularly and we have our own risk control. Binance post-listing is also looking for fdusd, trying to understand the situation, and calling people in the middle of the night. We are just making logical judgments,” He noted.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin’s $10,000 Stairway: Chart Signals March Toward $115,000

In the last week, Bitcoin showed a range-bound movement, with prices oscillating between $105,000 and $101,000 to produce a slight gain of 060% Notably, the flagship cryptocurrency has seen a market

Robert Kiyosaki’s Bitcoin Advice: ‘Buy More, Do Not Sell’—BTC to Hit $250K This Year

Robert Kiyosaki predicts bitcoin will soar to $250,000 this year as crashing central banks trigger mass bankruptcies, fueling unstoppable momentum behind hard assets like BTC Robert Kiyosaki Predicts

Jan 2024 SEC’s X account hacker got 14 months in prison for cyber fraud

Eric Council Jr was sentenced to 14 months’ imprisonment for his role in the Jan 9, 2024, hack of the US Securities and Exchange Commission’s (SEC’s) X account The convicted, along with

Pump.fun Leads Revenue Surge as Solana Has Best Quarter in 12 Months

In the first quarter of 2025, Solana’s blockchain protocol recorded its strongest performance in a year, with total application revenue rising to $12 billion January was particularly notable,

Bitcoin Pricing Bands Hint At Potential $117,000 Target – Details

Prominent crypto analyst Ali Martinez has identified the immediate important Bitcoin (BTC) price levels using the MVRV extreme deviation pricing bands model Notably, the premier cryptocurrency has

Ethereum Headed For Crucial Encounter At $4,000 – Here’s Why

Ethereum prices gained by over 46% in the past day to reach a peak of $2,634 before experiencing a slight retracement In line with the bullish rhythm of the crypto market, the prominent altcoin has