Justin Sun’s claim that Hong Kong-based custodian First Digital Trust is insolvent has landed in the crosshair of defamous claims launched by the company.
First Digital’s FDUSD Stablecoin was briefly ruled out on April 3rd after Sun claimed the company was “insolvent” according to data from Coindesk Markets.
The first step in the defamation claim, the subpoena, was filed late last week, demanding that the Hong Kong High Court issue an injunction that the Sun will not issue further statements on the matter. It also seeks an injunction requiring Sun to publish the withdrawal.
It also asks that the award of damages be issued (although no amount specified) in order to “illegal interference with the plaintiff’s contractual and business relationship” and “dealing with the plaintiff’s business.”
Since Sun first claimed on X that the first digital is insolvent, Tron founders have doubled the issue, holding a press conference in Hong Kong late last week, claiming fraud and calling on territorial regulators to reform rules regarding trusts.
For that part, First Digital has an example of redemption.
No dates for the first court hearing have been set. Sun has not yet submitted an answer, but posted to X saying “legal proceedings are welcome.”
A Sun spokesman did not comment on the issue.
The case number is HCA 680 of the High Court in Hong Kong.
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