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

BlockBeats News, April 4th, Justin Sun posted on social media, stating that First Digital Trust (FDT) has fallen into insolvency — meaning its total liabilities exceed its total assets, essentially rendering it financially bankrupt. As a result, in accordance with international banking regulatory standards, banking institutions must meet strict capital adequacy requirements, or else face the risk of having their banking license revoked.

However, what is shocking is that FDT has not been insolvent just 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 include the massive losses incurred from the misappropriation of user assets. Yet strangely, even as we discuss this, the company is still openly raising billions of funds. The real question that Hong Kong regulatory and law enforcement agencies truly need to answer is: how could this situation have occurred under their oversight? The fact that FDT is still operational to this day is in itself a profound irony of the rule of law in Hong Kong.