Hours after an angry mob reportedly attempted to break into the Beijing office of Raybo Technology, TRON’s partner in mainland China, the TRON Foundation has published a blog post in which it denied allegations of its involvement in a Chinese Ponzi scheme.
The project’s CEO, Justin Sun, has reassured Tron investors that the launch of BitTorrent Speed will go on as planned.
— Justin Sun
(@justinsuntron) July 8, 2019
The event comes at a bad time for TRON, which just launched the BitTorrent File System testnet on July 1, 2019. TRON’s official token, TRX, has also taken a dip — with its market cap falling by more than $100 million.
Notably, Justin Sun had previously warned his followers to be on the lookout for fraudulent investment opportunities and pyramid schemes.
TRON Foundation to Pursue Legal Action
Denying links to the Chinese Ponzi scheme dubbed ‘Wave-Field Super Community,’ TRON claims that it had warned investors of potential scams several times in the past. After learning about the investment scheme that was posing as an official TRON program, the Foundation said that it warned investors on multiple social media platforms.
TRON also said that it would pursue legal action against the perpetrators of such schemes. Furthermore, TRON’s partner, Raybo Technology, communicated with Wave Field Super Community, “seeking a cease and desist from acting in Tron’s name.” TRON’s Chinese partner is also reported to be working closely with the police to report the offenders.
The Wave-Field Super Community: An Elaborate Scam
The individuals responsible for creating the Wave-Field Super Community reportedly claimed that they were affiliated with uTorrent, “a super-representative of TRON.” The scam promised investors returns at the rate of one percent every day. The victims of the scheme stormed the offices — partly due to Justin Sun’s reluctance to disassociate himself from the scheme.
The Wave-Field controversy comes in the aftermath of the Chinese government banning cryptocurrency exchange services and Initial Coin Offerings (ICOs) towards the end of 2017. While victims of the Wave-Field scam were reportedly asked to make investments using TRON’s official token, TRX, official ties to the project have yet to be uncovered.
After the unfolding of yesterday’s events, do you still consider TRON to be a credible blockchain project? Let us know your thoughts in the comments below.