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Market Makers Cash In on FDUSD Stablecoin Depeg Arbitrage Opportunity

Wintermute Allegedly Profits $3M from FDUSD Stablecoin Depeg Amid Justin Sun's Accusations

  • Market maker Wintermute appears to have profited approximately $3 million by purchasing FDUSD tokens during a depeg event and redeeming them at full value.
  • The FDUSD stablecoin temporarily depegged to $0.87 following insolvency allegations by Tron founder Justin Sun.
  • First Digital has denied the insolvency claims, stating their stablecoin remains fully backed, and has threatened legal action against Sun.

Blockchain data reveals that market makers may have earned approximately $3 million in arbitrage profits during the recent depegging of the First Digital US dollar stablecoin (FDUSD). The stablecoin dropped to $0.87 on April 2 after Justin Sun, founder of Tron, publicly claimed the issuer was insolvent.

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According to blockchain intelligence platform Lookonchain, market maker Wintermute transferred over 75 million FDUSD tokens back to First Digital within a day of the depegging event. In an April 3 post on X, Lookonchain explained: “They likely bought $FDUSD at a discount during the depeg and redeemed it 1:1 through First Digital—making a solid profit.”

The data shows Wintermute acquired over 31 million FDUSD tokens from Binance immediately following the price drop. Lookonchain estimated, “Assuming they bought $FDUSD near the bottom at $0.90, they would make over $3M when $FDUSD returned to the peg.” This trading activity has drawn attention as market makers’ behaviors have been closely monitored since February’s $2.24 billion crypto liquidation event.

First Digital’s Response to Insolvency Claims

First Digital has firmly rejected Sun’s allegations, assuring users that the FDUSD stablecoin remains fully backed and redeemable at a 1:1 ratio with the US dollar. In an April 3 statement on X, the company declared: “First Digital stands firm: Justin Sun’s baseless accusations won’t distract from Techteryx’s own failures— our stablecoin FDUSD remains fully backed and solvent.”

Despite these assurances, some analytics tools had previously identified potential stability concerns with FDUSD. S&P Global Ratings had assigned FDUSD a stability assessment of 4 or “constrained” in an analysis shared with Cointelegraph on March 19. An S&P Global spokesperson explained that their assessments evaluate factors including “regulation and supervision, governance, transparency, liquidity and redeemability, and track record.”

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First Digital has indicated it plans to pursue legal action against Sun for what it describes as false bankruptcy allegations that triggered the stablecoin’s temporary depegging.

According to Evgeny Gaevoy, Wintermute’s founder, the crypto market crashes of 2025 have been “directly linked to TradFi events,” such as DeepSeek and Trump’s tariffs, rather than crypto-specific issues.

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