ChainCatcher news, Sun Yuchen posted on platform X stating that the theft of user funds by First Digital Trust (FDT) and the misappropriation of user funds by FTX are both very serious and malicious incidents of misappropriation of user funds. However, if one must compare the severity, the severity of First Digital Trust (FDT) is even more serious, more than ten times worse than FTX. The reasons are as follows:FTX misappropriated user funds. Although users were unaware of the misappropriation, at least internally within FTX, SBF made it appear as if there was a pledge loan, representing Alameda Research, pledging a large amount of FTT/SRM/FTX shares/Maps tokens to lend user funds. At least on the surface, this looked like a loan, and a certain degree of collateral was provided based on a percentage. In contrast, FDT directly misappropriated and stole assets without user authorization and without users being aware, without even the internal collateral process.SBF misappropriated user funds from FTX without user authorization, but ultimately used them for investments, with at least the vast majority going into high-quality companies such as Robinhood and AI companies like Anthropic, without engaging in embezzlement or indulgence. In comparison, FDT currently appears to have diverted the vast majority into private companies, completely misappropriated and embezzled, without making any substantial investments.After the incident was exposed, SBF's attitude was at least proactive; he actively sought remedies, hiring law firms to find ways to recover user assets. In contrast, Vincent Chok Zhuo Junqiang, after the facts of misappropriation were exposed, still insisted on denying the truth, pretending that nothing had happened, showing great subjective malice.After the FTX incident, U.S. regulatory agencies and law enforcement quickly took action, actively intervening in the FTX bankruptcy proceedings and arresting those involved with FTX (including SBF), actively controlling the situation, helping users mitigate losses, and avoiding a significant impact on the reputation of the U.S. financial system.

ChainCatcher news, TRON founder Justin Sun stated that he is determined to support and ensure that all scammers are held accountable under the law. He emphasized that First Digital Trust (FDT) should no longer deceive the public in Hong Kong or other regions under the guise of a licensed institution.

ChainCatcher news, according to Theblock, anonymous researcher Samczsun will leave his position at the venture capital firm Paradigm after four and a half years, and will continue to serve as an advisor while expanding the SEAL 911 security team.Before joining Paradigm in October 2020, Samczsun was known as a cybersecurity researcher and white hat hacker. SEAL 911 is an initiative launched by many crypto security experts aimed at responding quickly to security incidents such as hacks and vulnerabilities. The organization provides a Telegram channel where people can leave tips about smart contract vulnerabilities or alert the team to security incidents.

ChainCatcher news, Sun Yuchen officially launched a $50 million bounty program related to the FDT fraud incident (equivalent to about 10% of its liquidity support or stolen TUSD reserves) to recover TUSD reserves misappropriated by bad actors, including First Digital Trust (FDT). It stated:Any insider or whistleblower providing significant clues to help recover the funds will be rewarded.Full transparency: A dedicated portal (#web3bounty.io) will be launched soon, providing real-time updates.Independent verification: All claims will undergo rigorous evaluation before rewards are issued.

ChainCatcher news, Sun Yuchen once again accused FDT of fraud. He stated: First Digital Trust (FDT) openly disregards all fiduciary duties and regulatory norms, claiming to represent Techteryx in managing a securities portfolio of up to $501.8 million for the Aria Commodity Finance Fund in its own legal name. According to the Hong Kong Securities and Futures Ordinance (SFO), any individual or company providing securities portfolio management services must hold a Type 9 license from the Hong Kong Securities and Futures Commission, unless the service is limited to its wholly-owned subsidiaries or provided by its 100% owned parent company. Clearly, FDT is not only ignoring the fundamental principles of the trust industry but is also openly contemptuous of Hong Kong's banking and investment laws. In other words, its actions have completely disregarded Hong Kong's regulatory authorities and law enforcement agencies.Furthermore, Sun Yuchen believes that FDT has not only fallen into negative assets but has also had negative net assets for three consecutive years. By the end of 2024, its net assets are projected to be negative HKD 100 million. This does not include the massive losses caused by its large-scale misappropriation of user assets. Even so, it can still publicly manage billions of dollars in public assets in the market today.Previously, First Digital responded: it will take legal action against Sun Yuchen's "slanderous behavior."

ChainCatcher message, Sun Yuchen posted on platform X, "I met with Legislative Council member Wu Jiezhuang from Hong Kong and reported the embezzlement case of nearly $500 million in customer reserve funds of First Digital Trust (FDT), and submitted relevant materials to regulatory and judicial authorities. We are fully confident that we will recover the funds and hold the individuals involved in the theft accountable under the law."

ChainCatcher news, according to official news, First Digital Trust announced that it will go live today at 15:00 to respond to the allegations made by Sun Yuchen.

ChainCatcher news, TRON founder Justin Sun disclosed at a press conference that after providing financial assistance to the stablecoin TUSD under Techteryx, he discovered that financial institutions including Hong Kong trust company First Digital Trust Limited (FDT) and Legacy Trust Company Limited (Legacy Trust), as well as a private company in Dubai, illegally misappropriated $456 million of TUSD's fiat reserves.Justin Sun stated that Vincent Chok, CEO and Director of FDT and Legacy Trust, approved the illegal transfer of public assets, harming public interests and jeopardizing Hong Kong's reputation as a global financial center. Although Justin Sun himself provided sufficient liquidity for TUSD through his own assets, safeguarding the interests of all TUSD holders, the incident exposed serious loopholes in the trust industry. He called on Hong Kong regulators to severely punish the fraudsters and reform industry standards.

ChainCatcher news, Justin Sun stated in his live broadcast, "TrueCoin is suspected of colluding with institutions such as FDT to transfer $456 million in TUSD legal reserves to a private company in Dubai wholly owned by the wife of the aforementioned Cayman fund investment manager through false documents and unauthorized transfers. FDT and Legacy Trust CEO and Director Vincent Chok directly approved these illegal transactions, which seriously violate fiduciary duties."

ChainCatcher news, Sun Yuchen stated at the press conference: "Techteryx came to me after the funds were misappropriated, 500 million dollars is not a lot for me, and I am also happy to help TUSD and users avoid its potential risks."

ChainCatcher news, Sun Yuchen stated at a press conference in Hong Kong, "We have over 500 million dollars in FDT, but we cannot withdraw it. Their actions have already violated the law, and I believe the court will give a fair judgment. I am convinced that FDT is insolvent."

ChainCatcher news, Sun Yuchen stated in his live broadcast that he has called for FDT to hire a third-party auditing firm for an audit, "I believe the audit results will show that FDT is in a state of insolvency."

ChainCatcher news, Sun Yuchen has started a live broadcast regarding the First Digital Trust incident.

ChainCatcher news, Sun Yuchen posted on platform X stating that fraudsters have been threatening Web3 users, public trust, and Hong Kong's reputation as an international financial center. He will be live on platform X in a few hours regarding the First Digital Trust incident.

ChainCatcher news, Sun Yuchen once again stated on social media that his claim about First Digital Trust (FDT) going bankrupt is a statement of fact, devoid of any emotional coloring. If you have any relationship with them, please sever it as soon as possible to protect your assets. As for what consequences its founder Vincent Chok will face for his fraudulent actions, that will be determined by the judicial system and regulatory authorities.It is reported that Vincent Chok, founder and CEO of First Digital Trust (FDT), is responding to questions in an AMA, having clarified and explained almost all issues, and currently both sides are basically "sticking to their own words."

ChainCatcher message, Sun Yuchen reiterated in a post on X that First Digital Trust (FDT) is already insolvent. This is a statement of fact, devoid of any emotional tone. "As for what consequences its founder Vincent Chok will face for his fraudulent actions, that will be determined by the judicial system and regulatory authorities."Sun Yuchen does not advise anyone to overinterpret his words, especially regarding his closest partners.