Hong Kong Investigates $500 Million Crypto Trust Fraud, Raising Regulatory Concerns

Hong Kong authorities are investigating a suspected $500 million crypto trust fraud involving First Digital Trust, raising concerns about regulatory gaps and investor confidence. The investigation focuses on the alleged misappropriation of approximately $456 million from TrueUSD reserves in Hong Kong. This incident spotlights potential vulnerabilities in Hong Kong’s regulatory framework for virtual assets, as it impacts both international investment and retail investors’ trust.