BlockBeats News, April 8th, Justin Sun posted on X platform listing the Seven Deadly Sins of First Digital Trust (FDT) as follows:

· Sin #1: Breach of Trustee Duty

Under the Hong Kong Trustee Ordinance (Chapter 29), a trustee must act with prudence, diligence, and loyalty. Misappropriation of client funds breaches Section 4 (duty of prudent administration) and the principles of trust. Evidently, FDT will bear liability for compensation and damages in civil litigation.

· Sin #2: Misuse of Client Funds

The Securities and Futures (Client Money) Rules (Chapter 571) stipulate that segregated funds shall not be used for the custodian's own purposes. Client assets must be held in segregated accounts, and unauthorized withdrawals are strictly prohibited. By inappropriately transferring TUSD funds to ARIA DMCC, FDT will face enforcement actions, including fines, license revocation, or criminal prosecution.

· Sin #3: Unlicensed Investment Activities

While FDT is registered as a Trust or Company Service Provider (TCSP), it does not hold any SFC license to conduct regulated activities on behalf of clients. Its purported investment activities involving TUSD assets with ARIA directly contravene the Securities and Futures Ordinance by engaging in regulated activities without authorization.

· Sin #4: Fraud or Theft

Embezzlement of funds with the intent to deceive clients constitutes fraud or theft. FDT colluded with conspirators (such as Aria CFF, Truecoin (Alex De Lorraine), Crossbridge/Finaport (Yai Sukonthabhund)) to cover up the misappropriation through falsified records, claiming to have made fraudulent investments.

· Sin #5: False Reporting or Concealment

To conceal misappropriation or unauthorized transactions, FDT provided false statements and fraudulent documents, claiming that the TUSD funds were intact and invested as instructed. This violates Section 300 of the Securities and Futures Ordinance (use of deception or fraudulent means in securities dealings).

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

By engaging in complex transactions or offshore account transfers to disguise the origins of embezzled funds, FDT facilitated and/or engaged in activities that contravene anti-money laundering regulations.

· Sin #7: Prevention of Bribery Ordinance (POBO)

The Prevention of Bribery Ordinance is the key legislation governing secret commissions in Hong Kong. It criminalizes corrupt transactions, including agents receiving undisclosed benefits or commissions without the principal's consent. FDT/Legacy, at Vincent Chok's direction, received secret kickbacks from DMCC in exchange for the illicit transfer of TUSD custodial funds.