The creator of the Tron cryptocurrency Justin Sun is ready to prosecute the author of a revealing publication in The Verge for libel.
Journalist Christopher Harland-Dunaway, in his article The many escapes of Justin Sun, argues that Justin Sun “often tries to circumvent the financial rules” of both China and the United States. During the journalistic investigation, the author got acquainted with the internal financial documentation of the company and spoke with 15 sources who wished to remain anonymous.
The journalist characterizes Sun as an extremely energetic “man, desperate for success, showing little to no empathy for his employees, and using technology that has thwarted the US-China trade war.”
Harland-Dunaway claims that a former Tron employee told him about “insider trading by Sun and his Beijing team to drive up the price of TRX.” Another source told the journalist that the main reason for bringing in ex-SEC official David Labhart as the first head of compliance is “to prove that TRX is not a security, but a utility token.”
The article said that Labhart’s dismissal was due to his refusal to “write a legal opinion to defend Sun in the event that he was charged with selling unregistered securities.”
The material says that after acquiring the Poloniex crypto exchange in 2019, Sun implemented only an imitation of the “know your customer” (KYC) procedure. According to the source, the platform will register the user even if he “sends a photo of Donald Duck.”
Justin Sun dismissed the allegations as false and fabricated and called the article “blatant misinformation”. On Twitter Sun declared that the text about violations on Poloniex is “a complete lie on the part of the Verge and the reporter”, and threatened to sue the journalist and the publication.
“Poloniex has always enjoyed an impeccable reputation since its inception as a SAFU exchange. We hold ourselves to the highest standards in protecting the crypto assets of our clients with a proven track record without any major security breaches in the past eight years,” Sun said.
This is not the first time the Tron founder has been accused of illegal activities. Last month, analytics firm GFX Labs accused Justin Sun of intent to run a managed vote on Compound. A statement about preventing the US-China trade war could interfere with Sun’s cooperation with the Chinese authorities. Last year, the founder of Tron moved to the research project of the Chinese Communist Party.
Source: Bits
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