According to a report, Justin Sun allegedly changed over 300 BTC from Poloniex users’ funds for his own purposes. According to a new investigation published on The Verge, crypto billionaire Justin Sun has been linked to a slew of wrongdoings. Sun, who co-founded Tron and also controls BitTorrent and Poloniex, has broken practically every law in the book since he began his crypto odyssey.
Since 2017, the polarising CEO has been involved in a slew of scandals ranging from tax evasion to market manipulation. Following his expulsion from China due to the Tron ICO, his acts as CEO of BitTorrent and Poloniex in the United States may expose him to legal action. In the essay by Christopher Harland-Dunaway, Justin is described as an escape artist who has always managed to get himself out of legal trouble. Several former and present employees, as well as government records, confirm these charges against the Tron creator, according to the writer.
Insider trading is one of the allegations made in the report, which claims that Tron’s market-making crew bought massive numbers of tokens after the company made a good public announcement. This drove up the price, allowing for a large profit on the sale. This type of market manipulation is banned in stock trading and might expose crypto traders to penalties.
Former colleagues have also accused him of being overbearing and occasionally ordering illicit activities. According to a former employee, when Sun planned to launch the BitTorrent Token, he attempted to escape liability by portraying it as a utility token. As a result, he ordered BitTorrent’s chief compliance officer, David Labhart, to write a document demonstrating that BTT was a utility token rather than a security token. Despite Labhart’s refusal, Sun managed to launch the token by airdropping it to BitTorrent users.
Sun’s various bank accounts and citizenship in several countries were also mentioned in the paper as an attempt to avoid prosecution. His crypto exchange, Poloniex, is also accused of being involved in unethical and dangerous activities. These include registering in the Seychelles islands to avoid accountability despite the fact that the majority of the employees are based in Boston and lowering the KYC rules. Sun was also reported to have retrieved about 300 BTC belonging to exchange users through a scheme dubbed “Operation Couch Cushions,” but converted them for his own use by disguising the transaction trace of the currency.
What do you think about these allegations?