First Digital has announced plans to take legal action against Tron founder Justin Sun for making false claims about the stability of its USD-pegged stablecoin, FDUSD. After Sun’s accusation triggered a market downturn and peg drop for FDUSD, First Digital swiftly responded, clarifying the issuer’s solvency and defending their ongoing operations. 87 million tokens were burned in response to Sun’s accusations as part of an effort to regain FDUSD’s stability. This move suggests a commitment to FDUSD’s continued operation. The stablecoin’s market price recovered after its peg was restored, as reported by crypto trackers such as CoinMarketCap and cybersecurity firm PeckShield. First Digital has stated their intent to pursue legal action against Justin Sun for defamation and potential malicious campaign targeting their company.