The cryptocurrency market was hit by turmoil yesterday after Justin Sun claimed that First Digital, the issuer of FDUSD, had gone bankrupt. This claim led to a sharp drop in the price of FDUSD, which was supposed to be pegged at $1, dropping to as low as $0.87. While the token has since recovered somewhat, it has not fully returned to its intended $1 parity. Following the market backlash, Sun issued a new statement reiterating his concerns about First Digital Trust (FDT) and its operations. In his latest statements, Sun claimed that FDT had failed to meet customer fund repayments and was effectively insolvent. Despite this, he claimed that the company continued to operate as a public trust in Hong Kong, suggesting significant legal loopholes. Expressing strong concerns about the integrity of Hong Kong’s financial ecosystem, Sun said: “As seen in the case of FDT, there appear to be obvious loopholes in the trust industry in Hong Kong to circumvent financial and banking regulations. These will not only pose a risk to the public, but also jeopardise Hong Kong’s reputation as a global financial centre.” He called on regulators and law enforcement agencies in Hong Kong to take decisive action to address these issues and prevent further financial risks to the public. Related News: BREAKING: Binance Makes First Official Statement on FDUSD Drop In addition to raising regulatory concerns, Sun noted that TUSD stablecoin Techteryx is actively pursuing legal action against FDT: “I am determined to support Techteryx and ensure that all scammers are held under the full force of the law. Never again should they be allowed to defraud the public under the guise of a licensed entity in Hong Kong or elsewhere.” At the time of writing, the FDUSD price is trading at $0.9795 and is extremely volatile. Chart with 15-minute candles showing the volatility in the price of the FDUSD token. We would like to remind you that all cryptocurrencies, including stablecoins, are high risk and that there is a high risk of losing all invested money, including the principal. Users need to do their own research and stay away from these tokens, which currently seem much riskier and have high volatility. *This is not investment advice. Continue Reading: BREAKING NEWS: Tron Founder Justin Sun Made a New Statement About FDUSD!
