CryptocurrencyExpert Financial Markets Traders

The Justin Sun Scandal: Insider Trading and Gaming the Cryptocurrency Market

Justin Sun is a known name in the world of crypto, and the recent news going around has rocked his followers around the world.

The Verge has published a mind-blowing investigative report with the crypto mogul linked with many gross violations. According to the report, there is almost no rule that BitTorrent creator has not broken since he started cryptocurrency.

The revelations shown in the report have left thousands of fans in disbelief because the gravity of Sun’s offenses is staggering.

The  Alleged Illegal Acts of Justin Sun

Sun has been controversial from the beginning of his journey, and this is not the first time he has been in the limelight for fraudulent acts. One time in 2017, the Poloniex CEO was alleged to have been involved in market manipulation and tax evasion.

In every case, however, Sun manages to wiggle his easy out. The report describes him as an “escape artist who manages to find his way out of legal troubles.” 

Trusted sources reveal that there are some official documents and some of Sun’s former and present staff that can confirm that the allegations before him are true.

One of the most significant allegations leveled against the Tron founder is Insider Trading. The investigative report claims that the market-making team at Tron purchased enormous amounts of tokens when Tron released a public announcement that went successfully. This resulted in a significant hike in price, making it possible to sell at incredible profit. This gross money manipulation is not legal in stock trading or crypto trading.

Many former Tron employees claim that Sun is extremely authoritative and sometimes orders his staff to carry out illegal operations.

Another serious allegation against Sun by another employee is to avoid liability; during the launching of the BitTorrent token, he described it as a utility token. He was alleged to have asked his Chief Compliance Officer to draft a new document showing BitTorrent token as a utility, not security.

The report also claims that Sun has multiple bank accounts and multiple citizenships handy to avoid prosecution (if any).

Sun Embezzles 11 Million USD worth of Bitcoin Belonging to Poloniex Users

This is another shocking accusation against the Tron founder. It is alleged that Sun’s crypto exchange enterprise, Poloniex, has been involved in serious shady activities like lowering KYC standards.

Allegedly, using a project termed “Operation Couch Cushions,” Sun recovered approximately 300 BTC belonging to the users that took part in the exchange. He then obscured the transaction trail for the coins, converting the coins for his personal use.

It is also said that Poloniex has been registered in Seychelles Islands, despite most of the workers being situated in Boston. This was done to evade liability.

Justin Sun’s Responses

Sun responded to some of the allegations in the investigative report stating that most of them were untrue and fabricated. He said that Poloniex isn’t registered in Seychelles and uses the most recent state-of-the-art KYC technologies.

He also said that he upholds the highest possible standard in all his dealings and might pursue legal solutions.

Related Articles

BlockchainCryptocurrency

What is Annual Percentage Yield (APY) and How Does It Work in Crypto?

Introduction Annual Percentage Yield (APY) in crypto refers to the attention or...

Crypto / Forex Broker ReviewsCryptocurrency

ArgoTrade Review – Your global trading partner?

What is ArgoTrade ArgoTrade currently offers online trading using CFDs via reliable...

AltcoinsCryptocurrency

Ripple Publishes Regulatory White Paper to Restructure UK’s Crypto Regulatory Framework

Ripple, a popular crypto solutions provider and blockchain-based digital payment network has...