On April 8, Justin Sun posted an article on X platform to list the seven deadly sins of First Digital Trust (FDT), as follows:

· Crime #1: Breach of Trust Liability

Under the Hong Kong Trust Ordinance (Chapter 29), the trustee must act with caution, diligence and loyalty. Misappropriation of client funds violates Article 4 (Obligation of Reasonable Caution) and the principle of trust. Obviously, FDT will bear liability for damages and damages in civil litigation.

· Crime #2: Abuse of Customer Funds

The Securities and Futures (Customer Payments) Rules (Chapter 571) stipulates that custodial funds shall not be used for the purpose of the custodian himself. Customer assets must be stored in quarantine accounts, and unauthorized withdrawals are strictly prohibited. By transferring TUSD funds to ARIA DMCC without proper authorization, FDT will face enforcement actions, including fines, licence revocation or criminal prosecution.

· Crime #3: Unlicensed Investing Activities

Although FDT is registered as a trust or corporate service provider (TCSP), it does not have any SFC license to conduct regulated activities on behalf of its clients. Its so-called investment activities involving TUSD assets in ARIA directly violate the provisions of the Securities and Futures Ordinance, that is, conducting regulated activities without permission.

· Crime #4: Fraud or Theft

Misappropriation of funds for the purpose of deceiving customers constitutes fraud or theft. FDT conspired with accomplices such as Aria CFF, Truecoin (Alex De Lorraine), Crossbridge/Finaport (Yai Sukonthabhund) to cover up misappropriation by forging records and claiming to have made false investments.

· Crime #5: False report or concealment

To cover up misappropriated or unauthorized transactions, FDT provided false statements and fraudulent documents claiming that TUSD funds were intact and invested as directed. This violates Section 300 of the Securities and Futures Ordinance (using fraud or deceptive means in securities trading).

· Crime #6: Violation of Anti-Money Laundering (AML) Obligations

FDT facilitates and/or constitutes a violation of anti-money laundering regulations through complex transactions or offshore accounts to disperse misappropriation of its source.

· Crime #7: The Prevention of Bribery Ordinance (POBO)

The Prevention of Bribery Ordinance is the main regulation for the management of secret commissions in Hong Kong. It criminalizes corrupt transactions, including agents collecting undisclosed benefits or commissions without the consent of the principal. FDT/Legacy, under the direction of Vincent Chok, received secret kickbacks from the DMCC in exchange for illegal transfer of TUSD custodial funds.