First Digital Trust Files Defamation Claim Against Justin Sun

2 months ago

First Digital seeks an injunction to restrain Sun from publishing "similar words" to claims astir insolvency.

Apr 9, 2025, 5:09 p.m.

Justin Sun's allegations that Hong Kong-based custodian First Digital Trust is insolvent person landed him successful the cross-hairs of a defamation assertion initiated by the company.

First Digital's FDUSD stablecoin briefly de-pegged connected April 3 aft Sun claimed the institution was "insolvent," though it has since virtually recovered, according to CoinDesk markets data.

The writ of summons, the archetypal measurement successful a defamation claim, was filed precocious past week and requests the Hong Kong High Court to contented an injunction restraining Sun from making further statements connected the matter. It besides asks for an injunction requiring Sun to people retractions.

It besides asks for the Court to contented an grant for damages (though it doesn't specify however much) for "unlawful interference with the Plaintiff's contractual and concern relationships" and "causing harm to the Plaintiff's business."

In the clip since Sun made his archetypal assertion connected X that First Digital was insolvent, the Tron laminitis has since doubled down connected the issue, holding a press league precocious past week successful Hong Kong alleging fraud and calling connected the territory's regulators to betterment rules astir trusts.

For its part, First Digital has posted examples of redemptions going through.

A day for an archetypal tribunal proceeding has not been set. Sun has not yet filed a response, but posted connected X that helium "welcomes immoderate ineligible process."

A spokesperson for Sun had nary remark connected the matter.

The lawsuit fig is HCA 680 successful Hong Kong's High Court.

Sam Reynolds

Sam Reynolds is simply a elder newsman based successful Asia. Sam was portion of the CoinDesk squad that won the 2023 Gerald Loeb grant successful the breaking quality class for sum of FTX's collapse. Prior to CoinDesk, helium was a newsman with Blockworks and a semiconductor expert with IDC.