Modesty is not one of Justin Sun’s virtues. With his self-absorbed demeanor, various rhetorical failures, and his penchant for a glitzy lifestyle, the businessman hasn’t just made friends in the crypto community. The 31-year-old likes to show off what he’s got, he prefers to keep quiet about how he got it. With actions like the investor lunch with Warren Buffett being heralded as a “big deal” for TRON, or the tacky disappointment that the Ukrainian government didn’t airdrop TRON holders, Sun hasn’t gained any sympathy point. But none of that is criminal. In contrast to the accusations that journalist Christopher Harland-Dunaway is now raising against the founder of the TRON crypto platform.
A life in lagoons
Justin Sun’s path begins in 2017. It is the time of the many ICOs that ring the cash register in the crypto market with projects that have been taking over overnight. And a time when it was not yet entirely clear how to legally classify token sales, which are comparable to IPOs. As an employee of Ripple Labs, Justin Sun had already gained some experience in the cryptocurrency sector, but then he started his own project, which aimed to decentralize the Internet from scratch: TRON.
A promise that works. TRON has an extremely successful ICO, the campaign raised around 70 million US dollars. Justin Sun is still in his home country of China, but the dark clouds are gathering there. The government organizes an ICO ban, but Sun keeps pushing through the ICO and is already planning the escape route from it. Sun is said to have received a tip from Binance boss Changpeng Zhao and ended the ICO a day before it was officially banned. The bags for the flight to San Francisco are already there.
Next stop: BitTorrent
Justin Sun arrives in the United States with a strong tailwind. The course of TRX skyrocketed, the market capitalization grew to over three billion US dollars in a short time, almost half of which went to the Tron Foundation. Sun is already preparing its next step: for $140 million it acquires the San Francisco-based BitTorrent company, publisher of the P2P file-sharing protocol of the same name.
An Acquisition with Taste: Due to BitTorrent management meeting with other interested parties, Sun is said to have obtained a court order. The deal happened, but in hindsight, it probably didn’t work out. “Does anyone know if Justin Sun is short on cash?” BitTorrent founder Bram Cohen asked the Twitter community in July 2019, alluding to pending payments from the Tron Foundation to Bitttorrent in the tweet. At the time, course manipulation accusations were already being made around Sun, the TRX course, and BitTorrent tokens.
Using insider information to get quick money
These accusations should continue to intensify. Christopher Harland-Dunaway claims to have learned from his inner circle of employees that Justin Sun had instructed Sun’s token purchases shortly before the company made the positive news public, and then sold the tokens at a huge profit. A practice known as insider trading, which is rightfully punishable.
At the latest, Justin Sun seems to be using all means to ensure success. Former employees report a climate of fear, and Sun, who has since returned to China to set up a “market-making team” there, a rogue who thinks ill of him, has now referred to himself at conferences as ” Chairman Mao.” Have talked.
Justin Sun buys Poloniex
Next on the shopping list was Poloniex. A crypto exchange with a dubious reputation. One former employee described the operation, in which pump-and-dump methods were said to be the order of the day, as a “number one fucking casino”.
Poloniex was turned upside down in 2018 when it was bought by Circle, which wanted to reinstate the exchange with KYC procedures. However, the success was modest: the volume of transactions collapsed with the introduction of the legitimacy control. However, Justin Sun apparently recognized the missing piece of the puzzle in Poloniex in his company network and took over the store.
Moving to the Seychelles
Sun eventually moved Poloniex to the Seychelles. She still denies it to this day. A letter from the Ontario Securities Commission, in which the authority accused Poloniex of unauthorized securities transactions, clearly states: “Poloniex is a company incorporated under the laws of the Republic of Seychelles.” The choice should not only have fallen on the island state for its dream beaches.
To boost user flow again, Justin Sun is said to have ordered the KYC process to be eased. “Fake KYC!” he is said to have said once, according to former employees. Poloniex eventually introduced an automated KYC process, which he probably didn’t see as related to identification.
Now It’s Getting Dirty (More): According to Christopher Harland-Dunaway, Justin Sun is said to have started “Operation Couch Cushions,” essentially stealing funds from Poloniex users. For years, Bitcoin is said to have been sent to wallets that could only receive Tether. Transactions were blocked, but Bitcoin was no longer accessible. Considerable sums of money are said to have accumulated over the years. Around 300 Bitcoin are said to have been manipulated in this way, the trace of which is eventually lost in a joint Poloniex wallet.
Just as Sun hides its assets (it is said to have 13 accounts in the US alone), it also hides its residences. Sun purchased Maltese citizenship, including eight Maltese bank accounts. For obvious reasons: “He thought taxes were stupid,” said a Sun employee. He is also a citizen of the Caribbean islands of St. Kitts and Nevis. Sun is also said to have bought a passport for Guinea-Bissau, a West African country.
Little by little, however, he was caught in the crosshairs of the Chinese authorities. Sun’s circumvention of China’s ICO ban should catch up with him. Six Tron employees were arrested in China and the investor meeting with Warren Buffett was canceled because Justin Sun was said to have been detained by Chinese authorities.
authorities in the neck
After his time in China, where Justin Sun is said to have been softened up according to all the rules of the repressive apparatus, he eventually returned to San Francisco, but he left the US just before the pandemic and never returned. Supposedly, the FBI, SCE and the IRS are investigating Sun. There are allegations of money laundering, unauthorized securities issuance, and fraud.
Meanwhile, Sun, whose personal fortune is estimated at $300 million, is Grenada’s ambassador to the World Trade Organization. Probably mainly for marketing reasons for Tron, but also for tactical reasons to gain diplomatic immunity.
A request for comment from TRON and Poloniex on the allegations remained unanswered at press time.
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