Justin Sun Reveals First Digital Trust (FDT) Faces Insolvency: A Three-Year Ongoing Crisis in Hong Kong’s Banking Oversight

In a recent update from COINOTAG News on April 4th, Justin Sun revealed alarming news regarding **First Digital Trust (FDT)**, which is facing financial insolvency. This condition arises when an entity’s liabilities surpass its assets, effectively marking it as bankrupt. According to **international banking regulations**, institutions like FDT must adhere to stringent capital adequacy standards to maintain their banking licenses. Shockingly, FDT’s insolvency is not a one-time event; it has reportedly persisted for three consecutive years, culminating in an estimated **negative asset value** of HKD 100 million by 2024. This assessment excludes the significant losses arising from the **mismanagement** of user assets. Moreover, despite these troubling financial statistics, FDT continues to seek **billions in funding**. This situation raises critical questions about the effectiveness of oversight by Hong Kong’s regulatory bodies and law enforcement, as the ongoing operations of FDT appear to challenge the integrity of the financial regulatory landscape in the region.