First Digital refutes Sun Yuchen's accusations: we are completely innocent and are considering legal action.

The crypto world has recently been stirred up again. First Digital (FDT) issued a statement today, officially responding to allegations made by crypto assets tycoon Sun Yuchen regarding its stablecoin reserve management, emphasizing that all allegations are “baseless and factually incorrect,” and stated that it is seeking legal assistance to defend the company’s reputation.

Sun Yuchen’s press conference sparked controversy, FDT: baseless accusations

First Digital stated in a declaration that Sun Yuchen publicly made “reckless and baseless” accusations against FDT at a press conference held earlier, claiming that FDT was involved in fund misappropriation and improper operations. However, FDT refuted this claim, insisting that it has never participated in any coordinated conspiracy or fund misappropriation activities.

FDT emphasizes a simple role: executing transactions solely as instructed.

According to the statement, FDT indicates that it acts as a neutral third-party agency, conducting transactions only based on the written instructions of Techtyeryx and its authorized representatives. FDT is not responsible for reviewing the content of investments and has not transferred or invested funds without authorization. All asset operations have written records that are traceable, and are conducted in full compliance with regulations.

AML/KYC issues are a bottleneck, Techtyeryx refuses to cooperate.

FDT Supplement, currently the capital redemption request made by Techtyeryx has been questioned by ARIA (presumably a regulatory body), mainly based on Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. ARIA requires Techtyeryx to provide information on the ultimate beneficial owners, but so far, Techtyeryx has been unable to provide it.

“Shifting Responsibility”? FDT criticizes Techtyeryx and Justin Sun for evading management errors.

FDT indicates that Techtyeryx and Justin Sun are trying to shift their stablecoin reserve management responsibilities onto FDT. In reality, both have full decision-making authority to choose safer, more conservative investment strategies, yet they still opt for high-risk options. FDT believes this demonstrates obvious negligence or a proactive assumption of risk, and the responsibility should be entirely borne by them.

Refuting bankruptcy rumors: FDT and FDUSD assets are still fully in place.

Regarding the accusations by Sun Yuchen and Techtyeryx that FDT is facing bankruptcy, FDT firmly denies these claims and states that such remarks are malicious operations aimed at deliberately damaging its market reputation and credibility. FDT emphasizes that its stablecoin FDUSD is fully backed by cash and equivalent assets on a 1:1 basis, and all reserve assets’ ISIN numbers and certification reports have been made public and are available for verification at any time.

FDT: Is seeking legal avenues to defend its reputation.

Finally, First Digital stated that it is currently seeking legal assistance and will take legal action to protect its rights and reputation. “We are processing all redemption requests and, as always, maintain full repayment capability,” FDT added.

This article First Digital refutes Sun Yuchen’s accusations: We are completely innocent and are considering legal action. It first appeared in Chain News ABMedia.