BlockBeats news, on April 4, Justin Sun posted on social media indicating that First Digital Trust (FDT) has fallen into a state of insolvency – that is, total liabilities exceed total assets, essentially in a state of financial bankruptcy. Because of this, according to international banking regulatory regulations, banking institutions must meet strict capital adequacy requirements, or they will face the risk of having their banking licenses revoked. Shockingly, FDT has not only been insolvent once but has been in this state for three consecutive years – with a negative net asset of 100 million HKD by the end of 2024. This does not even include the huge losses caused by its large-scale misappropriation of user assets. But paradoxically, as we speak, the company is still publicly raising billions in funds. The real question that Hong Kong regulatory agencies and law enforcement need to answer is: how could this happen under their supervision? The fact that FDT is still operating is a huge irony of the rule of law in Hong Kong.
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