BlockBeats News: On April 4th, Justin Sun posted on social media that First Digital Trust (FDT) has fallen into a state of insolvency - with total liabilities exceeding total assets, essentially in a state of financial bankruptcy. Therefore, according to international banking regulatory regulations, banking institutions must meet strict capital adequacy requirements, otherwise they will face the risk of revoking their banking licenses.
However, it is shocking that FDT has not only been insolvent once, but has also been insolvent for three consecutive years - with a net asset of negative HKD 100 million at the end of 2024. This does not include the huge losses caused by its large-scale misappropriation of user assets. But strangely, as we were discussing, the company was still publicly raising billions of dollars. The real question that Hong Kong regulators and law enforcement agencies need to answer is: How could this situation happen under their supervision? The fact that FDT is still operating today is a great irony to the rule of law in Hong Kong.
