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Thursday, February 29, 2024

Multimillionaire and Founder of Bittorrent and Tron Justin Sun Denies Servants About US and Chinese Harassment

The TRON Foundation, BitTorrent and related parties have not received regulatory action notices from any country in the world, including the United States and China. Such a message on Twitter was left by the head of both projects, Justin Sun, after the appearance of relevant assumptions on the network. (Also Read: BTC, ETH, LTC and XRP Weekly Price Forecast)

“We consider the recent statements disseminated by third parties to be unfounded,” he wrote.

A few hours earlier, Cinneamhain Ventures partner Edam Cochran, citing his own sources, said that US regulators may be investigating TRX. He cites a lawsuit against the Tron Foundation filed by a group of investors in New York last spring, which the organization petitioned to reject in December. (Must Read: Binance Coin Price Prediction)

“Its rationale would be correct if Tron did not conduct significant activities in the United States and did not take measures to ensure the availability of its token to US residents,” writes Cochran.

These issues are at the center of the alleged investigation, he said, and in some cases the facts are not in favor of Tron. So, he mentions Poloniex, an exchange affiliated with Sun, which listed TRX in December 2019 and introduced “first-level accounts” that allow you to deposit / withdraw up to $ 10,000 per day without verification, as well as trade with leverage up to 50x.

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“Poloniex is registered in the Seychelles, that is, in the same place where BitMEX was registered, thinking that it will ignore the identification requirements and remain out of the reach of American regulators. But the situation with Poloniex is even worse, as it operates from the United States and there are key figures in its leadership, ”adds Cochran.

Among other factors, he mentions the receipt of over $ 2 million by the Tron Foundation from the US authorities as part of a business support program amid the coronavirus pandemic, which indicates the importance of the company’s activities in the country, as well as arguments in favor of overstating TRX trading volumes and centralizing its blockchain.

“This is important in the Tron business as they often promote lending and gambling applications on their blockchain. Without sufficient blockchain decentralization, these products could be considered illegal offerings in the US. It is unclear what investigative measures are currently taking place, but there is reason to believe that Tron may be more controlled by American regulators than the organization itself thinks. It is important to add that if an investigation is really underway, not all SEC initiatives spill over into negative actions, and even then they can take months or years, ”concludes Cochran.

According to journalist Colin Wu, in the Chinese community, Sun wrote that the Tron Foundation is based in Singapore and did not sell its tokens to the Americans during the ICO, so the project is not in danger. Wu notes that contrary to San’s words, Caixin and Verge have previously reported an investigation by the Chinese authorities into Tron, while the absence of US residents from the ICO is being questioned by some alleged participants.

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