A $500M fraud investigation involving First Digital Trust commences in Hong Kong, questioning regulatory stability and affecting foreign investor confidence.
Hong Kong Fraud Investigation
Hong Kong's First Digital Trust allegedly redirected $456 million from TrueUSD reserves, shaking retail investor confidence. Wu Jiezhuang underscores the need for stringent oversight. Reports suggest potential regulatory reforms to address existing gaps.
Implications for the International Market
Community confidence has been shaken as Hong Kong faces scrutiny over its regulatory framework. Key industry voices urge quick adjustments to protect investments. International perception of Hong Kong's role as a digital asset hub could shift due to regulatory gaps.
TrueUSD's Activity and Next Steps
Despite past fraud incidents, TrueUSD remains stable with a $1.00 price. Its market cap is $495.08 million with a trading volume increase of 19.94%. Analysts foresee regulatory shifts to mitigate risks. Wu Jiezhuang stresses the need for a comprehensive custodial regulatory framework.
These developments underscore the need for Hong Kong to revamp its digital asset policy structure to prevent future incidents.
