Binance Reassures Users on FDUSD Reserves Amid Controversy
Binance once again stated the accuracy of First Digital USD (FDUSD) reserve with evidence for the February survey, amid the crypto market observers concerned by a de-pegging event.
Author by
News Room

On April 3, Binance shared an update on its blog regarding the stablecoin First Digital USD (FDUSD). The company mentioned that it had conducted two separate reviews of FDUSD’s reserve data. The first review took place after the release of the February attestation report, and the second was done recently to verify the accuracy of the reserves.
According to the audit carried out by Prescient Assurance, as of March 1, FDUSD had $2.05 billion in reserves. These reserves, which are securely held in fixed deposits and U.S. Treasuries, exceed the amount of FDUSD in circulation. This ensures that the stablecoin maintains a 1:1 redemption with the U.S. dollar. Binance has reassured users that it will continue monitoring FDUSD closely, with another review planned after the upcoming attestation report in two weeks.
Justin Sun’s Allegations and Market Panic
The controversy began when Justin Sun, the founder of Tron (TRX), made alarming claims about FDUSD’s issuer, First Digital Trust (FDT). Sun accused FDT of being insolvent, which immediately caused panic in the market. Following his statements, FDUSD lost its peg, dropping by 5%. Investors rushed to sell their holdings, causing the stablecoin’s price to fall as low as $0.87 before it gradually recovered.
Sun’s remarks did not go unnoticed. He called for regulatory action and heavily criticized Hong Kong’s financial system, advising investors to withdraw funds. This added to the uncertainty, fueling more volatility in FDUSD’s price.
First Digital Trust’s Response and Legal Threats
FDT quickly responded to Sun’s allegations, strongly refuting his claims. The company insisted that FDUSD is fully backed and that Sun’s statements were misleading. According to FDT, the situation had nothing to do with FDUSD itself but was instead connected to a separate dispute involving another stablecoin, TrueUSD (TUSD), which FDT also manages.
FDT further accused Sun of launching a smear campaign against its business. The company stated that Sun’s claims were designed to create unnecessary panic and hinted at potential legal action against him. This response helped calm some of the market’s fears, leading to FDUSD regaining its value close to $0.99.
Binance’s Role and Industry Concerns
One of the biggest concerns that emerged from this situation was Binance’s significant exposure to FDUSD. The exchange currently owns about 94% of the total supply of the stablecoin. This has led some industry analysts to point out the risks associated with depending on a single stablecoin for key trading pairs.
Despite all these challenges, Binance remains committed to maintaining FDUSD stability. The company has promised users that it will continue observing FDUSD’s reserves and act accordingly to keep the stablecoin pegged. Currently, FDUSD appears to have stabilized, trading at $0.99 despite market volatility.
The event is a reminder of the speed at which a stablecoin can lose trust as a result of outside events. But Binance’s move in auditing the reserves of FDUSD gives a feeling of security for users who are depending on the stablecoin for transactions and trades.
News Room
Editor
Newsroom is the editorial team of CoinfoMania, delivering 24/7 crypto news, market insights, and in-depth analysis. With 30+ journalists worldwide, we keep you ahead in the blockchain space.
Read more about News RoomRelated Posts
Loading more news...