Policy, Justin Sun, First Digital Trust, Hong Kong, Fdusd First Digital seeks an injunction to restrain Sun from publishing “similar words” to claims about insolvency. 

Justin Sun’s allegations that Hong Kong-based custodian First Digital Trust is insolvent have landed him inside the cross-hairs of a defamation declare initiated by the company.

First Digital’s FDUSD stablecoin briefly de-pegged on April 3 after Sun claimed the company was “insolvent,” though it has since practically recovered, according to CoinDesk markets data.

The writ of summons, the first step in a defamation declare, was filed late remaining week and requests the Hong Kong High Court to problem an injunction restraining Sun from making extra statements on the matter. It moreover asks for an injunction requiring Sun to publish retractions.

It moreover asks for the Court to problem an award for damages (though it doesn’t specify how loads) for “unlawful interference with the Plaintiff’s contractual and business relationships” and “causing damage to the Plaintiff’s business.”

In the time since Sun made his first declare on X that First Digital was insolvent, the Tron founder has since doubled down on the problem, holding a press conference late last week in Hong Kong alleging fraud and calling on the territory’s regulators to reform pointers spherical trusts.

For its half, First Digital has posted examples of redemptions going by way of.

A date for an preliminary courtroom docket listening to has not been set. Sun has not however filed a response, nonetheless posted on X that he “welcomes any legal process.”

A spokesperson for Sun had no contact upon the matter.

The case amount is HCA 680 in Hong Kong’s High Court.

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