Justin Sun Withdrawing Assets after Arrest Rumors Goes Viral
While the reasons for Sun’s recent financial transactions remain unknown, he has responded to the claims with just a comment “4” a number that signifies False News and Fear, Uncertainty and Doubts (FUD) amongst others.
On-Chain data from crypto analytics firm, Lookonchain has shown that Justin Sun, the founder of the Tron Blockchain protocol has been liquidating some of his assets over the past 24 hours. According to the data from Lookonchain, the popular crypto innovator transferred a total of 2,200 ETH tokens worth approximately $4.6 million to both Binance and Huobi Global exchanges.
While the essence or purpose of the token transfers remains largely unknown, there has been ongoing speculation that the withdrawals might be connected to the recent rumor about the arrest of the Grenada Ambassador to the World Trade Organization (WTO) in Hong Kong.
Justin Sun can be tagged as a very polarizing figure in the digital currency ecosystem and despite not having been indicted in any jurisdiction, many stakeholders still do not trust his dealings. Recently, the United States Securities and Exchange Commission (SEC) levied charges against Sun and three of his companies.
The firms included Tron Foundation Limited, BitTorrent Foundation Ltd, and Rainberry Inc. Per the charges of the SEC, Sun allegedly facilitated and traded the sales of unregistered Tronix (TRX) cryptocurrency. Besides this, Sun was also slammed with charges related to secondary market manipulations through wash trading and the contracting of influencers to promote Tron ecosystem products without proper documentation or disclosures.
While Tron has not been one of the top digital currencies by ranking, the blockchain is arguably the biggest protocol that facilitates Tether (USDT) transactions on-chain. Considering the high cost of transactions on the Ethereum blockchain, Tron has become the preferred destination for most USDT stablecoin transactions.
This linkup is not a very solid one as regulators have often dragged Tether Holdings Ltd for similar market manipulations and the allegations against Tron may not help the outlook of either Web3.0 company.
Justin Sun Responds with No Explanation
In today’s digital currency ecosystem, the news is very easy to fly around irrespective of whether they are true or not. While the reasons for Sun’s recent financial transactions remain unknown, he has responded to the claims with just a comment “4” a number that signifies False News and Fear, Uncertainty and Doubts (FUD) amongst others.
Blockchain systems are very transparent and this accounts for why Lookonchain could pick up the young billionaire’s onchain activities.
Among the reasons why crypto Twitter might be suspicious of his moves include the hasty takeover of the larger shares of Huobi Global by About Capital Management. While Sun is currently playing a role as an international adviser to Huobi according to him, many believe he actually owns About Capital and is using the Venture Capital outfit as a front for his buyup of the trading platform.
Should Sun, however, be liquidating his assets based on the arrest or other legal brawls, then it will be just as legal fees can run into millions, learning from former FTX CEO Sam Bankman-Fried.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
