Stablecoins Associated with First Digital Trust (FDT) Temporarily Depegs as Justin Sun Warns of Company’s Insolvency 

The post Stablecoins Associated with First Digital Trust (FDT) Temporarily Depegs as Justin Sun Warns of Company’s Insolvency  appeared first on Coinpedia Fintech News

In a surprising turn of events, Justin Sun, a prominent figure within the Tron (TRX) ecosystem, has revealed that First Digital Trust (FDT), a tech-driven financial institution based in Hong Kong, is effectively insolvent and unable to cover its obligations. In an X post on April 2nd during the late Western financial markets, Sun noted that FDT has a significant loophole in the internal risk management of its financial systems and the trust licensing process in Hong Kong.

“I urge regulators and law enforcement to take swift action to address these issues and prevent further major losses. Hong Kong’s reputation as a global financial center is at stake, and similar financial fraud incidents must never happen again,” Sun noted. 

Protect users and protect HK

First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets. There are significant loopholes in both the trust licensing process in…