TRON founder Justin Sun under pressure: new allegations of market manipulation
- There are new allegations of market manipulation against TRON founder Justin Sun. The trigger is the influencer Zeng Ying, who is said to have been Sun’s partner in the early TRON years.
- Now she wants to hand over incriminating material to the US Securities and Exchange Commission (SEC). Your statements could cause significant damage to Sun, as there is already a similar lawsuit against him that could be expanded.
Zeng Ying describes in detail how Sun is said to have opened several Binance accounts using employee identities in 2017 and 2018 in order to specifically influence the TRX price. According to their account, coordinated waves of purchases were triggered to artificially inflate the price and market capitalization before large quantities of tokens were sold to retail investors.
She speaks of “huge illegal profits” and claims to have internal chats, documents and statements from former employees. The SEC has already made contact and wants to cooperate fully. It is currently unclear whether and to what extent the authority will use the new information, but the level of detail of the allegations is causing a considerable stir.
The 2023 SEC lawsuit
The allegations aren’t all that new. Back in March 2023, the SEC filed a comprehensive civil lawsuit against Sun, the Tron Foundation and related companies.
Zeng Ying accuses her ex-partner Sun of carrying out over 600,000 wash trades between April 2018 and February 2019 in order to simulate higher than real sales.
If that were true, it would be a case for the public prosecutor’s office, unless, as in the USA, the statute of limitations expired after five years.
Image created with ChatGPT-AI (DALL E)
In addition, TRX and BTT should be sold without registration Celebrities secretly paid for advertising have been. The SEC estimated the allegedly illegal profits at around $31 million.
The content of Zeng Ying’s statements corresponds to these allegations and – if they are true – provides inside information for the first time about processes, methods and people involved.
Consequences for TRON and Sun
The timing of the accusations is extremely bad for TRON. TRON is one of the most important networks for stablecoin transfers, and Sun practically controls the company. He also owns BitTorrent (Rainberry), as well as the exchanges Poloniex and HTX.
Its influence on USDD, HTX and other projects is therefore significant. But each new legal rumor damages investor and market confidence in the companies with which Sun is associated. In the short term, this could result in strong volatility swings for TRX and BTT.
Now Sun’s future depends on whether the SEC finds the new statements credible and whether they result in further legal action.
If the statements are proven, Sun’s position in his own companies would become untenable – and the entire, then ex-TRON syndicate would have to reorganize itself.
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