While the reasons for Sun’s recent financial dealings remain unknown, he has responded to the allegations with only a “4” comment which is a number referring to Fake News, Fear, Uncertainty and Doubt (FUD) among others.
On-Chain data from crypto-analytics firm, Lookonchain showed that Justin Sun, founder of the Tron Blockchain protocol was liquidation some of its assets over the past 24 hours. According to data from Lookonchain, the popular crypto innovator has transferred a total of 2,200 ETH tokens worth about $4.6 million to both the Binance and Huobi Global exchanges.
While the essence or purpose of the token transfers remains largely unknown, there has been persistent speculation that the withdrawals may be linked to the recent rumors about the arrest of Grenada’s ambassador to the World Trade Organization (WTO) in Hong Kong.
Justin Sun can be classified as a very polarizing figure in the cryptocurrency ecosystem and although he has not been charged in any jurisdiction, many stakeholders still do not trust his dealings. Recently, the US Securities and Exchange Commission (SEC) imposed charges against Sun and three of his companies.
The companies included Tron Foundation Limited, BitTorrent Foundation Ltd, Rainberry Inc. According to the SEC charges, Sun allegedly facilitated and traded the sales of unregistered Tronix (TRX) cryptocurrency. Besides this, Sun has also been subjected to charges related to secondary market manipulation through trade laundering and contracting influencers to promote products of the Tron ecosystem without proper documentation or disclosures.
While Tron was not one of the top-ranked digital currencies, the blockchain is arguably the largest protocol facilitating on-chain Tether (USDT) transactions. Considering the high cost of transactions on the Ethereum blockchain, Tron has become the preferred destination for most USDT stablecoin transactions.
This link is not very strong because regulators have often dragged Tether Holdings Ltd for similar market manipulations and the allegations against Tron may not help either Web3.0 company’s prospects.
Justin Sun responds without explanation
In today’s digital currency ecosystem, it is very easy to trade news regardless of whether it is true or not. While the reasons for Sun’s recent financial dealings remain unknown, he has responded to the allegations with only a “4” comment which is a number referring to Fake News, Fear, Uncertainty and Doubt (FUD) among others.
Blockchain systems are very transparent and this explains why Lookonchain was able to capture the onchain activities of the young billionaire.
Among the reasons crypto Twitter could be suspicious of its move is the swift takeover of the largest shares in Huobi Global by About Capital Management. While Sun is currently playing a role as an international advisor to Huobi according to him, many believe he actually owns About Capital and uses Venture Capital Group as a front for his purchase of the trading platform.
However, if Sun liquidates his assets based on the arrest or other legal wrangles, it would be as if the legal fees could run into the millions, based on learning from former FTX CEO Sam Bankman-Fried.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.