Will Raid Deeply Affect TRX?
Well-known Chinese blockchain project TRON has seemingly encountered serious legal issues. TRON led by CEO Justin Sun is no stranger to headlines. As previously reported by CCN, apparently a Chinese scam has made a look alike webpage to TRON to draw in victims. The scam managed to bring in roughly $30 M in CHY before disappearing.
The elaborate scam managed to make user of TRON's Chinese name Wave Field. The "Wave Field Super Community" apparently ran ads on Chinese social network apps to draw in investors. The scammers claimed to be TRON's Super Representatives - node operators who maintain the TRX blockchain. Some of the investors have claimed that they tried to reach out to Justin Sun for clarification and have received no response.
A single mother who had taken a large loan to invest in the scam has committed suicide. Tensions on WeChat and other Chinese social media began growing and the Chinese public seem to blame Sun. Many viral messages in Chinese social media blame Sun for not doing enough to protect investors and blame him for the single mother's death.
The Beijing police have raided TRONs office in Beijing earlier today.
A few days before the raid, Sun commented on the controversy. He claimed no wrong doing and pointed out that similar scams existed with other cryptocurrencies such as Bitcoin and Ethereum.
Just less than an hour ago, Sun tweeted regarding the scandal, claiming that everything is fine.
The strangest thing to his claim is a few "Whale Alerts" seem to contradict him. They show very big TRX movements, roughly at the time of the raid.
While it seems that Sun would legally be in the right in most countries, Chinese courts are not known for their fairness and transparency. In addition, the penalty for a fraud that affected Chinese citizens is the death penalty in China. Despite probably being in the right, should public sentiment against Sun remain strong, it could potentially cause deep legal issues for Sun.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado