Scary Claim from Tron Founder Justin Sun about First Digital Trust (FDT)! Did it go bankrupt? Here are the details.

The founder of Tron, Justin Sun, claimed that the Hong Kong-based First Digital Trust has gone bankrupt, with total liabilities exceeding total assets, effectively putting it in a state of financial insolvency.

Justin Sun Claims First Digital Trust Has Filed for Bankruptcy, Questions Hong Kong Regulators

Sun expressed his claims in a social media post, stating that FDT has gone bankrupt for three consecutive years and that by the end of 2024, its net asset value will be negative 100 million Hong Kong Dollars.

Additionally, it was claimed that the company misappropriated a large amount of user funds and caused significant financial losses.

Sun questioned how FDT was still able to operate despite its financial situation, criticizing the regulatory and enforcement agencies in Hong Kong.

It warned that banking institutions must meet strict capital adequacy requirements under international banking regulations or risk license revocation.

Despite the alleged financial issues, it is reported that FDT is still publicly raising billions in new capital, which Sun described as "mocking Hong Kong's legal system."

Sun called on the officials to address the issue and explain how such a situation could continue under their supervision.

As of now, FDT has not publicly responded to Sun's claims, and the Hong Kong regulators have not yet issued a statement.