Justin Sun: First Digital Trust has had negative net assets for three consecutive years and is suspected of violating the Hong Kong Securities and Futures Ordinance

On April 4, Sun Yuchen once again accused FDT of fraud. It said: First Digital Trust (FDT) blatantly disregards all fiduciary obligations and regulatory norms, claiming to be managing the securities portfolio of up to US $501.80 million in the Aria Commodity Finance Fund on behalf of Techteryx in its own legal name. According to Hong Kong's Securities and Futures Ordinance (SFO), any person or company providing securities portfolio management services must hold a Category 9 license from the Hong Kong Securities Supervision Commission, unless the service is limited to its wholly-owned subsidiary or is provided by its 100%-controlled parent company. Clearly, FDT is not only ignoring the basic principles of the trust industry, but also blatantly flouting Hong Kong's banking and investment laws. In other words, its actions have completely flouted Hong Kong's regulators and law enforcement agencies.
In addition, Justin Sun believes that FDT has not only been in negative equity, but has been in negative net assets for three consecutive years. As of the end of 2024, its net assets are negative 100 million Hong Kong dollars. This does not include the huge losses caused by its large-scale misappropriation of user assets. Even so, it can now publicly trust billions of dollars of public assets in the market.
Previously, First Digital responded that it would take legal action against Sun Yuchen's "smear behavior".