Justin Sun "FDT may violate Hong Kong financial laws... Suspected of illegally managing $500 million in assets"

Minseung Kang

Summary

Justin Sun, founder of TRON, stated that First Digital Trust (FDT) may be violating Hong Kong financial laws.
Sun criticized FDT for managing Aria Commodity Finance Fund's securities assets, claiming there is a possibility of illegality.
According to Hong Kong law, a certain license is required to provide securities asset management services for third parties.

Justin Sun, founder of TRON, continued to voice criticism against the stablecoin issuer First Digital Trust (FDT).

Previously, Justin Sun, founder of TRON (TRX), raised concerns about FDT's ability to repay funds, noting that FDUSD temporarily fell below $1, causing a de-pegging phenomenon.

On the 4th, Justin Sun claimed on X (formerly Twitter) that "FDT is managing a securities asset portfolio worth $501.8 million held by Aria Commodity Finance Fund under the name of Techteryx, but this is clearly illegal."

Sun emphasized, "FDT is blatantly violating not only the basic principles of trust business but also Hong Kong's investment and banking-related laws," adding, "This is not a mere operational mistake, but an act of disregarding Hong Kong's regulatory bodies and judicial system."

Meanwhile, according to the Hong Kong Securities and Futures Ordinance (SFO), to provide securities asset management services for third parties, one must hold a Type 9 license from the Hong Kong Securities and Futures Commission (SFC). An exception is made if the service is provided between wholly-owned subsidiaries or parent companies.

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