Justin Sun Faces Allegations On Questionable TUSD Minting
Tron co-founder, Justin Sun, finds himself embroiled in fresh allegations as questions arise over his involvement in potentially questionable tactics to mint TUSD (TrueUSD) tokens. Recent on-chain data from Sun’s verified Tron address, “TT2T17…U9N,” reveals that on July 21, 2023, he minted an astounding $62 million worth of TUSD. Interestingly, Sun withdrew $50 million in USDT (Tether) from Huobi before promptly depositing the same amount to Bitfinex.
Tron co-founder, Justin Sun, is facing more allegations of engaging in questionable tactics to mint TUSD out of "thin air"https://t.co/WuGw5fgBpd
— crypto.news (@itscrypto_news) July 22, 2023
Sun’s TUSD Moves
What followed next has raised eyebrows within the crypto community. Sun burned $50 million TUSD, and simultaneously added $50 million USDT and $12 million TUSD to JustLend, a prominent DeFi protocol on the Tron blockchain. TUSD is a stablecoin designed to mirror the value of the US dollar. The sudden and enigmatic minting and burning of TUSD have given rise to concerns regarding Sun’s intentions. Observers on Twitter have voiced their puzzlement as no clear explanation from Sun has been forthcoming.
Crypto analyst Adam Cochran has offered a speculative theory, suggesting that Sun might be using assets from exchanges Huobi and Poloniex to mint TUSD “out of thin air.” Cochran further alleges that Sun could be utilizing these exchanges as personal “piggy banks,” with user assets allegedly being funnelled into JustLend to facilitate borrowing more coins.
History of Legal Troubles in Crypto
Despite the growing scrutiny, Justin Sun has yet to respond to the allegations. This is not the first time Sun has faced legal troubles. 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), with selling unregistered securities in TRX and BitTorrent’s BTT tokens.
The SEC also accused Sun and his companies of engaging in market manipulation through extensive wash trading and orchestrating a scheme to pay celebrities for promoting TRX and BTT without disclosing their compensation. According to the SEC, Sun allegedly directed his employees to conduct over 600,000 wash trades of TRX, resulting in illicit proceeds of $31 million from illegal, unregistered offers and token sales.
