Justin Sun: FDT Theft Worse Than FTX, Assets Stolen For Personal Gain

Justin Sun, a notable figure in the cryptocurrency industry, recently drew attention to the similarities and differences between the First Digital Trust (FDT) theft and the infamous FTX scandal. In a post on the X platform, Sun emphasized that the implications of FDT’s actions are more severe than those of FTX. He explained that while FTX’s misappropriation of funds was linked to an internal collateral lending system managed by Alameda Research, FDT engaged in outright theft, misappropriating assets without obtaining user consent and bypassing any form of collateralization.

Sun highlighted the differing intentions behind the misappropriations. In the case of FTX, founder Sam Bankman-Fried (SBF) redirected the misused funds towards reputable investments, targeting firms such as Robinhood and Anthropic. In contrast, the FDT incident reveals a troubling pattern where stolen assets appear to have been funneled into private entities for personal gain, with no strategic investment in sight.

Following the FTX scandal, SBF initiated recovery efforts, enlisting legal support to reclaim user assets. However, FDT’s Vincent Chok has continued to deny accountability, raising concerns about intentional wrongdoing. The aftermath of this incident poses significant risks to the region’s identity as a premier financial hub, prompting calls for immediate intervention from local regulatory bodies to aid affected users in asset recovery. The situation underscores the need for robust regulatory frameworks to prevent such incidents and protect user funds in the cryptocurrency industry.