Foundation

BitTorrent

<p class="is-style-lead">Tron co-founder, Justin Sun, is facing more allegations of engaging in questionable tactics to mint TUSD out of “thin air,” reportedly using deposits from two exchanges, Huobi and Poloniex.</p> 
<p>Recent on-chain data from Sun’s verified address, “TT2T17…U9N”, on Tron reveals that he minted $62 million in TUSD on July 21, 2023, withdrew $50 million in USDT from Huobi before proceeding to deposit $50 million USDT to Bitfinex.</p> 
<figure class="wp-block-image size-large"> 
 <img decoding="async" width="1024" height="466" src="https://crypto.news/app/uploads/2023/07/F1gAW0TWIAoDBKj-1024x466.jpeg" alt="Justin Sun TUSD transfers" class="wp-image-14180070"> 
</figure> 
<p>Afterward, he burned $50 million TUSD and added $50 million USDT and $12 million TUSD to JustLend, a top DeFi protocol on Tron. TUSD is a stablecoin that tracks the value of USD. </p> 
<p>The instant minting and burning of TUSD have raised concerns about the intention of Sun. Observers on Twitter said there was no apparent explanation from Sun to mint TUSD before instantly burning them.</p> 
<p> You might also like: <a href="https://crypto.news/justin-sun-speaks-on-trueusd-growth-looks-to-acquire-a-brics-tender/" rel="noopener noreferrer nofollow"> Justin Sun speaks on trueUSD growth, looks to acquire a BRICS tender </a> </p> 
<p>Adam Cochran, a vocal crypto analyst, speculates that unless Justin Sun used “the fake balance to snapshot or unwind debt temporarily and it was unbacked,” meaning the controversial Tron co-founder might be using Poloniex and Huobi assets to mint TUSD “out of thin air.”</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
   <p lang="en" dir="ltr">1/3<br><br>Like wtf Justin, just out in the open<br><br>Justin Sun's address on Tron (TT2T17KZhoDu47i2E4FWxfG79zdkEWkU9N)<br><br>-Mints $62M TUSD<br>-Withdraw's $50M in USDT from Huobi.<br>-Deposits $50M UDST into Bitfinex<br>-Burns $50M TUSD<br>-Deposits $50M USDT and $12M TUSD into JustLend <a href="https://t.co/0rHY5LABdW" target="_blank" rel="noopener noreferrer nofollow">https://t.co/0rHY5LABdW</a> <a href="https://t.co/KI34oLp7em" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/KI34oLp7em</a></p>— Adam Cochran (adamscochran.eth) (@adamscochran) <a href="https://twitter.com/adamscochran/status/1682097478491860998?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 20, 2023</a> 
  </blockquote> 
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div> 
</figure> 
<p><br>Cochran also seems to be castigating Justin Sun for what he claims to be using Huobi and Poloniex as two of his “piggy banks” since user assets are allegedly being “plowed” into JustLend for him to borrow more coins.</p> 
<p>Justin Sun has not responded to these allegations.</p> 
<p>In March 2023, the Securities and Exchange Commission (SEC) charged Sun and three of his companies – Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. (formerly BitTorrent) – for allegedly selling unregistered securities in TRX and BitTorrent’s BTT.</p> 
<p>Sun and his companies were also charged with market manipulation through extensive wash trading and orchestrating a scheme to pay celebrities to promote TRX and BTT without disclosing their compensation. </p> 
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
 <div class="wp-block-embed__wrapper"> <iframe loading="lazy" title="Justin Sun argues crypto winter is over and addresses the SEC charges against him" width="1020" height="574" src="https://www.youtube.com/embed/DuJ-nSXVzQ4?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
 </div> 
</figure> 
<p>The SEC claims the Tron co-founder directed his employees to engage in over 600,000 wash trades of TRX, generating proceeds of $31 million from illegal, unregistered offers and sales of the token.</p> 
<p> You might also like: <a href="https://crypto.news/justin-sun-transfers-4-3m-in-mkr-tokens-to-binance/" rel="noopener noreferrer nofollow"> Justin Sun transfers $4.3m in MKR tokens to Binance </a> </p>

Tron co-founder accused of printing TUSD out of ‘thin air’

crypto.news

Other articles published on Jul 22, 2023

Craig Wright Can Still Fight Bitcoin Copyright Claim in UK

MetaStones putting the DAO in Daoism

Current Overview of the Market: The Latest Situation in Bitcoin and the Highlighted Cryptocurrenc...

Bitcoin ($BTC) Trades Under $30K Ahead of Crucial Fed Rate Decision and Options Expiry Date

Celsius to Pay More to Customers in Settlement

Analysts bullish on crypto AI project, say it may outperform Chainlink and Monero

Join our free newsletter for daily crypto updates!