In a recent disclosure on the X platform, Justin Sun outlined the critical transgressions of First Digital Trust (FDT) that could significantly impact its operational integrity. The first infraction, a breach of trust duty, violates the Hong Kong Trustee Ordinance by neglecting the essential principles of prudence and loyalty, exposing FDT to substantial civil liabilities.
Furthermore, the misuse of client funds places FDT at severe risk of regulatory scrutiny. Authorized custodial funds, meant for client safeguarding, were misappropriated, potentially resulting in enforcement actions that include hefty fines or even license revocation.
Additionally, FDT’s engagement in unlicensed investment activities raises alarms, as it lacks the necessary licenses mandated by the Securities and Futures Ordinance. This unauthorized behavior not only jeopardizes client trust but also invites critical legal repercussions.
Allegations of fraud and theft have surfaced, connecting FDT to schemes involving falsified records and fictitious investments, which might result in substantial damage claims from aggrieved clients.
Compounding the issue is the false reporting of the status of client funds, demonstrated by fraudulent statements suggesting TUSD assets were properly managed, thereby breaching the Securities and Futures Ordinance.
Moreover, through dubious transaction practices, FDT has reportedly violated anti-money laundering (AML) regulations, potentially facing significant legal ramifications as a result.
Lastly, under the Prevention of Bribery Ordinance, FDT, influenced by Vincent Chok, is accused of receiving undisclosed commissions, further entrenching systemic corruption within its operations.