Justin Sun: FDT's net assets at the end of 2024 are negative 100 million Hong Kong dollars, with massive misappropriation of user assets leading to significant losses

On April 4th, Justin Sun made a post on social media, indicating that First Digital Trust (FDT) has gone into insolvency - that is, its total liabilities exceed its total assets, basically making it financially bankrupt. Consequently, in line with international banking regulatory standards, banking institutions must meet strict capital adequacy requirements; otherwise, they face the risk of having their banking license revoked. What is astonishing, however, is that FDT has not only been insolvent once but continuously for three years - with a net asset value of negative 100 million Hong Kong dollars by the end of 2024. This does not even take into account the huge losses resulting from the embezzlement of user assets. Strangely enough, even as we are discussing this, the company is still openly raising billions of funds. The real question that the Hong Kong regulatory and law enforcement agencies truly need to address is: how could such a situation have occurred under their supervision? The fact that FDT is still operating to this day is in itself a profound irony of the rule of law in Hong Kong.