Tron founder Justin Sun claims that Hong Kong-based First Digital Trust (FDT) has gone bankrupt, with total liabilities exceeding total assets, effectively in financial bankruptcy.
Justin Sun claims that the first digital trust is bankrupt, question Hong Kong regulator
Sun filed a complaint in a social media post, saying FDT has been in bankruptcy for the third year in a row, with its net worth of HK$100 million by the end of 2024.
He also alleged that the company embezzled a large amount of user funds, causing serious economic losses.
Sun criticised Hong Kong’s regulations and enforcement agencies and questioned how the FDT operates despite its financial situation.
He warned that banking institutions must meet strict capital adequacy requirements based on international banking regulations or revocation of risk licenses.
Despite alleged financial issues, FDT is reportedly still growing billions in the new capital, with Sun saying it “making ock laughs for Hong Kong’s legal system.”
Sun asked authorities to investigate the issue and explain how such a situation could continue under their watch.
As of now, the FDT has not responded publicly to Sun’s allegations, so Hong Kong regulators have not yet issued a statement either.
*This is not investment advice.
