Justin Sun, founder of Tron, has made shocking allegations against his Hong Kong-based First Digital Trust (FDT). He claims that the trust is insolvent, with its assets failing to cover liabilities by a significant margin. This puts FDT in a state of financial collapse, according to Sun, who notes that the firm’s net asset value will likely become negative HK$100 million by 2024. Sun alleges that the trust has embezzled funds from users, leading to substantial financial losses. He further criticized Hong Kong’s regulatory authorities for allowing FDT to operate despite its troubled financial standing. Sun warns that if institutions fail to meet stringent capital requirements under international banking regulations, they risk losing their licenses.