Justin Sun’s claims that Hong Kong-based custodian’s first digital confidence is insolvent, landed him at the intersection of an defamation claim initiated by the company.

First Digital’s FDUSD StableCecoin shorted on April 3, after Sun claimed the company was “insolvent”, although it has almost recovered, according to Coindesk Markets data.

The sentence of subpoena, the first step in a defamation, was filed late last week and requests Hong Kong High Court to issue an injunction that limits the sun from making further statements on the case. It also asks for an injunction that requires Sun to publish withdrawals.

It also asks that the Court issues a price for injuries (although it does not specify how much) for “illegal interference with the applicant’s contractual and business relationship” and “causing damage to the applicant’s business.”

In the time since Sun made his first claim of X that the first digital was insolvent, the Tron founder has since doubled on the issue and held a press conference late last week in Hong Kong, claiming fraud and calling on the regulators of the territory to reform rules on Trusts.

In turn, First Digital has sent examples of redemptions going through.

A date of an initial hearing has not been established. Sun has not yet filed an answer, but published on X that he “welcomes any legal process.”

A spokesperson for Sun had no comments on the matter.

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