Tron founder Justin Sun has been alleged of violating several international laws in a recent report by The Verge. Citing sources and internal documents, the paper alleged that Sun was involved in market making, insider trading, and front running in the crypto market.
Furthermore, he is accused of carrying highly risky and illicit trades through the crypto exchange Poloniex. One such claim is that Poloniex was running on a rubber-stamping system of fake know-your-customer (KYC). Where anyone was reportedly approved as a new customer without proving the authenticity of their government identity cards.
Soon after the expose, Sun has rubbished the paper’s accusations as “fake” and “fabricated”.
The Chinese crypto mogul also went on to say that “It is a complete falsehood on the part of the Verge and the reporter and a blatant defamation about the Poloniex operation.” Additionally, he argued that the exchange has “robust risk management and strong financial resources” in place for client servicing.
With regard to the fake KYC claims, Sun stated, “we have always strived to collaborate with regulators and invested in state-of-the-art KYC facilities in line with the industry standard.”
However, that’s not the end of it in the media report. The claims involving financial crimes like wire fraud and money laundering get more serious. So much so that the report indicates that an FBI investigation might already be underway.
Denying all the above claims, Sun took to Twitter to add, “We reserve the right to pursue legal remedies against the falsehoods brought on by any entities. We are represented by Harder LLP as our legal counsel.”
Local Chinese media reported that Justin Sun has taken to Sina Weibo, a Chinese microblogging website, to prove the report is in fact a “Rumor.”
He has reportedly stated that if the foreign media malign him by spreading rumors, he might take countermeasures by running for president of the U.S.
Meanwhile, not everyone is convinced if the crypto magnate will be held for the alleged crimes. One of Sun’s employees is speculating, in The Verge, stating, “If he [Sun] breaks so many laws at such a rapid pace, it’d be impossible for anyone to catch up to him.”
Tron goes for a toss?
With that being said, TRON has slid down close to 5% in the last 24 hours. At the time of writing, the token is at $0.058631, down from its 7-day high of $0.062463 on CoinGecko. At press time, the multi-purpose smart contract platform is also marking a plunging TVL. The current total value locked is around $4.13 billion, down -0.6% on Defillama in the last one day.
What do you think about this subject? Write to us and tell us!
Trusted
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
