Justin Sun Compares FDT Theft to FTX Scandal: A Deeper Look into Misappropriated User Funds

In a recent post on the X platform, Justin Sun highlighted parallels between the First Digital Trust (FDT) theft and the notorious FTX scandal, emphasizing that the implications of FDT’s actions are graver. He pointed out that while FTX’s misappropriation stemmed from an internal collateral lending system managed by Alameda Research, FDT engaged in outright theft, misappropriating assets without obtaining user consent, thus bypassing any form of collateralization.

Moreover, Sun noted the contrasting intentions behind the misappropriations. In FTX’s case, founder Sam Bankman-Fried (SBF) redirected misused funds towards reputable investments, targeting firms such as Robinhood and Anthropic. In stark contrast, the FDT incident reveals a troubling pattern where stolen assets seem to have been funneled into private entities for personal gain without any strategic investment.

While SBF initiated recovery efforts post-scandal, enlisting legal support to reclaim user assets, FDT’s Vincent Chok has continued to deny accountability, exacerbating concerns over intentional wrongdoing. The aftermath of this incident poses significant risks to Hong Kong’s identity as a premier financial hub, prompting calls for immediate intervention from local regulatory bodies to aid affected users in asset recovery.