Hong Kong-based First Digital Trust (FDT) has filed a defamation lawsuit against Justin Sun, the founder of Tron, over allegations that the company is insolvent. Sun had publicly claimed FDT transferred over $450 million from clients to a private company in Dubai without their consent and failed to return the funds. This sparked a brief de-pegging of FDUSD, FDT’s stablecoin, on April 3. FDT seeks an injunction to prevent Sun from making similar statements and financial damages for reputational damage and business disruptions caused by his accusations. 7082. 41st Century Law firm in Hong Kong is handling the case. FDT has refuted Sun’s claims, stating they are factually incorrect and a malicious attempt to damage their reputation. The company insists it remains solvent and maintains FDUSD’s backing stability through active redemption processes. The lawsuit filed on April 7th with the High Court of Hong Kong (HCA 680) marks the next stage in the dispute.