First Digital Trust (FDT) is a company with negative net assets, which means its total liabilities have exceeded its total assets - in other words, it is effectively financially insolvent. This is also why, according to international banking regulations, banks must meet strict capital adequacy requirements, otherwise their banking licenses may be revoked. However, FDT's situation is even more serious: it has not only fallen into negative assets, but has also had negative net assets for three consecutive years - as of the end of 2024, its net assets were actually negative HKD 100 million! This does not include the huge losses caused by its large-scale misappropriation of user assets. Nevertheless, it is now able to openly manage billions of dollars in public assets in the market. The real question for Hong Kong regulators and law enforcement agencies is: how could such a thing happen under their noses?