First Digital has successfully redeemed nearly $26 million in stablecoin withdrawals after its FDUSD token experienced a temporary depeg following allegations of insolvency by Justin Sun, founder of Tron. The FDUSD token fell to a low of $0.87 on April 2 after Sun claimed that First Digital had transferred over $450 million of customer funds without authorization and violated regulatory standards in Hong Kong. Despite these accusations, First Digital reported that it has processed approximately $25.8 million in FDUSD redemptions since the claims surfaced. The company reassured its users that FDUSD remains fully backed and redeemable, countering Sun's allegations. Additionally, industry experts have commented on the inherent risks of stablecoin depegs, emphasizing the need for enhanced transparency and regulatory accountability to mitigate systemic risks, especially in light of past collapses like that of TerraUSD in 2022.

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