Justin Sun fails to dissociate himself after links to million-dollar Ponzi scheme emerge
Justin Sun seems to be involved in everything these days, doesn’t he? From convincing Warren Buffett that the digital assets industry is not a scam, to finding himself at the center of one, the Tron CEO has been in the news a lot.
Even if his intentions are not as black and white as the above, Tron’s Justin Sun is now facing the fury of Chinese investors after he was accused of being involved in a million-dollar ‘Ponzi Scheme,’ according to Nuclear Finance, a Chinese cryptocurrency media outlet.
The scam not only cost the victims 200 million CNY [$30 million], but also led to one suicide, according to the aforementioned report.
Nuclear Finance reported,
“The wave field super community began to receive attention at the beginning of this year. In the name of the super representative of the wave field, it used the pyramid-selling promotion method to attract users to register, fill in the wave field tokens, and complete the operation of pulling the head to obtain more wave currency.”
“Wave Field Super Community” was the name given to the scheme and “Wave Field” is how Tron was referred to in the Chinese market. Hence, the naming controversy, which climaxed with the Wave Field Super Community App, shut up shop on June 30, funneling its investors’ funds.
This obvious attempt to leach off the fame of Tron should ideally have been shot down by Sun or some executive at Tron. However, no official or direct intimation was sent out. The “Wave Field Super Community” scheme also added that it had an association of sorts with the cryptocurrency project, in an attempt to lure unsuspecting investors.
Enraged, investors are now pointing fingers at Sun for not clearly distancing himself from the scheme and allowing artificial ties to remain tethered, which obviously added to the longevity of the scheme. The investors even claimed that Tron and its native cryptocurrency, TRX, felt the bullish waves of the relationship, with increased “activity” and “liquidity.”
Sun, despite being asked to confirm his association with the aforementioned scheme, hasn’t confirmed anything yet, nor has he denied the same.
However, on July 1, Sun stated on Weibo that there are Tron or Wave Field impersonators. However, he did not mention the “Wave Field Super Community” directly, something which further rattled investors and did not completely upend the situation.
Nuclear Finance also reported that Xia Bing, a middle-aged Chinese woman, committed suicide by slitting her wrists, owing to the collapse of the fund. Images of the same were circulated on several WeChat groups, riling public opinion against Tron and Justin Sun.
It was only on July 5 that Justin Sun tweeted,
As a leading blockchain protocol, there are Ponzi schemes using #TRON, #BitTorrent or #uTorrent names like “MMM #bitcoin, #Ethereum pyramid & #EOS ecosystem schemes”. We will never ask you to send money. Be careful & hodl your $TRX/ $BTT
— Justin Sun (@justinsuntron) July 5, 2019
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