On April 4th, Justin Sun stated 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. Due to this, according to international banking regulatory regulations, banking institutions must meet strict capital adequacy requirements, otherwise facing the risk of having their banking license revoked.

Shockingly, FDT has been insolvent not just once, but for three consecutive years - with net assets being negative 100 million Hong Kong dollars by the end of 2024. This does not even include the massive losses caused by its large-scale misappropriation of user assets. Ironically, even as we discuss this, the company is still publicly raising billions of funds. The real question for Hong Kong's regulatory and law enforcement agencies is: How could this happen under their supervision? The fact that FDT continues to operate is itself a significant mockery of Hong Kong's rule of law.