Tron Co-Founder Accused of Printing TUSD Out of ‘Thin Air’
• Justin Sun, co-founder of Tron, has been accused of minting TUSD out of “thin air” using deposits from two exchanges, Huobi and Poloniex.
• Data from Sun’s verified address on Tron reveals that he minted $62 million in TUSD and burned it.
• This has raised concerns as observers speculate that the controversial Tron co-founder might be using assets from Huobi and Poloniex to mint TUSD without explanation.
Tron Co-Founder Accused
Justin Sun, co-founder of the cryptocurrency platform Tron, is facing allegations of engaging in questionable tactics to mint a stablecoin called TUSD out of “thin air” with deposits from two exchanges; Huobi and Poloniex.
On-Chain Data Reveals Minting
Data taken from Sun’s verified address on the Tron blockchain reveals that on July 21st 2023 he had minted $62 million in TUSD before withdrawing $50 million USDT from Huobi and depositing it into Bitfinex. He then proceeded to burn the $50 million in TUSD afterwards and added $50 million USDT and $12 million TUSD into a DeFi protocol known as JustLend on the Tron network.
The instant burning of this amount of money after its creation has sparked questions by observers on Twitter about why such an action was taken without explanation. Some have speculated that unless Justin used the fake balance to temporarily snapshot debt or unwind it unbacked, he may be using assets from both Huobi and Poloniex to create new coins out of thin air for his own benefit.
In March 2023 The Securities & Exchange Commission (SEC) charged Justin Sun along with three companies associated with him; Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc (formerly BitTorrent). This was due to accusations that they had sold unregistered securities in TRX & BTT tokens as well as participated in market manipulation via wash trading & celebrity promotion compensation without disclosure.
No Response Yet
At this time Justin Sun has not responded to these allegations but will likely face consequences if found guilty by SEC investigations into his activities.