Sun Yuchen: Both FDT and FTX are incidents of embezzlement of user funds, with FDT being even more severe in terms of severity

Odaily Planet Daily News: Sun Yuchen published an article on X platform stating that the theft of user funds by First Digital Trust (FDT) and the misappropriation of user funds by FTX are both very serious and malicious incidents of misappropriation of user funds. However, if we have to compare the severity, the severity of First Digital Trust (FDT) is even more severe, even more than ten times worse than FTX. The reasons are as follows: 1. FTX misappropriated user funds. Although users were not aware of the misappropriation, at least within FTX, SBF acted as a collateral loan, representing Alemeda Research, pledging a large amount of FTT/SRM/FTX shares/Max tokens to FTX to lend user funds. At least on the surface, this was a loan, and a certain degree of collateral was used according to the percentage. FDT, on the other hand, directly misappropriated and stole assets without the user's authorization and without the user's knowledge, without even going through the process of internal collateral. 2. SBF misappropriated FTX user funds without user authorization, but ultimately used them for investment. At least the vast majority of them went into high-quality companies such as Robinhood, Anthropic, and other AI companies, without engaging in corruption or indulgence. On the other hand, FDT currently sees the vast majority of them entering private companies, completely misappropriated and embezzled, without making any substantial investments. 3. After the incident was exposed, SBF's attitude was at least positive, actively seeking remedies and hiring law firms to find ways to recover user assets. However, Vincent Chok Zhuo Junqiang, after the fact of embezzlement was exposed, still referred to a deer as a horse and pretended that nothing had happened, showing great subjective malice. After the FTX incident, US regulatory and law enforcement agencies quickly took action, actively intervened in the FTX bankruptcy process, arrested FTX related personnel (including SBF), actively controlled the situation, helped users recover, and avoided significant impact on the US financial reputation.