First Digital Trust sues Justin Sun for defamation over “insolvency” allegation
The post First Digital Trust sues Justin Sun for defamation over “insolvency” allegation appeared on BitcoinEthereumNews.com.
A custodian based in Hong Kong, First Digital Trust (FDT), filed a defamation lawsuit against Justin Sun for his claims that the company was insolvent since it transferred over $450 million from its custodial clients to a private company in Dubai without their consent and did not return the money. As a result, the FDUSD stablecoin briefly de-pegged on April 3 following Sun’s accusations. However, it has since virtually recovered. Moreover, the company requested an injunction to prevent Sun from publishing “similar words” to statements regarding insolvency. First Digital Trust takes Justin Sun’s remarks seriously and files a lawsuit against him Earlier, Tron’s founder Justin Sun initially shared an X post claiming First Digital was insolvent. In addition, he held a press conference in Hong Kong late last week where he accused the company of fraud. This pushed the First Digital Trust to file a lawsuit against Justin Sun for defamation over insolvency allegations. The summons writ, the initial stage of a defamation lawsuit submitted late last week, asked the Hong Kong High Court to grant an order prohibiting Sun from speaking about the issue in the future. Additionally, the company requested an injunction compelling Sun to take back what he previously stated. In addition, First Digital Trust requested the court to issue an award for damages, without stating the exact amount, for causing damage to Plaintiff’s business and unlawful interference with Plaintiff’s contractual and business relationships. An initial court hearing date had not yet been established. Sun did not respond to this; however, he shared an X post that he favored any legal action. Furthermore, Sun’s spokesperson remained silent on the issue. Notably, HCA 680 was the case number in the High Court of Hong Kong. FDT claims that the FDUSD stablecoin has proven to be resilient Following earlier…
Filed under: News - @ April 10, 2025 2:19 am