If TRON DAO — née TRON — wasn’t enough to start a conversation, an investigative piece by journalist Chris Harland-Dunaway, published in The Verge, dropped a bomb. It accused Tron founder Justin Sun of actions ranging from getting tips for an ICO ban to insider trading.
Speaking to journalist Laura Shin, Harland-Dunaway revealed more details about the Tron founder’s history.
Harland-Dunaway talked about making behaviors related to TRX. Citing his sources, the journalist said that Tron planned to buy TRX before any good news about the coin was released to the public. This would reportedly make Tron inflate the price of TRX and then sell it. Harland Dunaway said:
“…the lawyers I spoke to, who work at the intersection of crypto and finance, were unanimous: that a case can be made, that the insider trading law applies to crypto. The important thing is whether a crypto is considered a security or not.
He also spoke of Sun attempting to hire a former SEC officer — David Labhart — and other attorneys to have TRX viewed as a non-security measure.
Harland-Dunaway then discussed the Poloniex owned by Sun. According to him, his legal entity has been placed in the Seychelles to make it difficult to take legal action against the stock exchange. The journalist also alleged that Sun is pursuing citizenship in other countries, such as Malta, possibly to escape US regulators.
Now you may be wondering, how does the sun still rise? Harland-Dunaway claimed this was due to Sun’s strategy of physically escaping Chinese authorities just after the ICO ban was lifted. He was also involved in “escape from regulation” by using America’s sluggish justice system to his advantage, the journalist added.
Let me talk!
For his part, Justin Sun claimed that the article consisted of “false allegations and made-up stories”. In particular, he addressed KYC’s allegations of negligence against Poloniex and defended the stock’s reputation.
he too added that the exchange was not registered in Seychelles and does not serve US customers.
Sun went on to say,
“We reserve the right to pursue legal remedies against the falsehoods alleged by any entity. We are represented by Harder LLP as our legal counsel.”
However, it is important to note that most of Harland-Dunaway’s sources remain anonymous.
A matter of international security…
Many of TRX’s legal tangles trace back to the fundamental question of whether crypto is a security or not. This, in turn, brings us to the ongoing SEC v. Ripple case where the court is trying to rule the same for XRP.
Most recently, the court rejected the SEC’s request to suspend Ripple’s Fair Notice Defense. This update was pivotal to the blockchain company’s business. This has also raised hopes that the verdict will be in favor of XRP holders.
This post What SEC v. Ripple has in common with the allegations against Sun, TRON
was published first on https://ambcrypto.com/what-sec-v-ripple-has-in-common-with-the-allegations-against-sun-tron/