Tron founder Justin Sun has claimed that his Hong Kong-based First Digital Trust (FDT) has gone bankrupt, with its total liabilities exceeding its total assets, effectively putting it in a state of financial insolvency.
Justin Sun Claims First Digital Trust Is Bankrupt, Questions Hong Kong Regulators
Sun made the allegations in a social media post, stating that FDT has been insolvent for three consecutive years and its net asset value will be negative HK$100 million by the end of 2024.
He also alleged that the firm embezzled a large amount of user funds, causing significant financial losses.
Sun criticised Hong Kong's regulatory and enforcement agencies, questioning how FDT was still able to operate despite its financial situation.
He warned that banking institutions must meet strict capital adequacy requirements under international banking regulations or risk license revocation.
Despite its alleged financial problems, FDT is reportedly still publicly raising billions in new capital, which Sun described as “making a mockery of Hong Kong’s legal system.”
Sun called on authorities to look into the matter and explain how such a situation could continue under their watch.
As of now, FDT has not publicly responded to Sun's allegations, and Hong Kong regulators have yet to issue a statement either.
*This is not investment advice.
