First Digital has redeemed nearly $26 million in stablecoin withdrawals after its FDUSD token briefly lost its US dollar peg due to insolvency allegations from Tron founder Justin Sun. FDUSD depegged on April 2, dropping to $0.87 following Sun's claims that the firm mismanaged $450 million of customer funds to a Dubai entity and violated Hong Kong securities laws. However, First Digital responded by confirming its solvency and assuring that the FDUSD remains fully backed and redeemable. Since the incident, they have processed approximately $25.8 million in redemptions, demonstrating operational stability. Sun reiterated his accusations on April 4, but First Digital maintained confidence in the integrity of its stablecoin operations. Industry experts emphasize that stablecoin depegs pose significant systemic risks to the crypto market, drawing parallels to the collapse of algorithmic stablecoins in past events, highlighting the need for enhanced transparency and regulatory oversight in the space.

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