After Tron’s founder, Justin Sun, canceled his much-anticipated charity lunch with the Wall Street giant, Warren Buffett, misfortunes have come knocking. A Chinese media outlet, 21st Century Business Herald, has reported that Sun was involved in an illegal fundraising scheme in China.
According to the media outlet, Sun conducted unregistered gambling services that were meant for the Chinese market. Additionally, the Tron founder was accused of promoting prohibited pornographic content through porn transaction facilitation, which is banned in China.
Sun is stationed in China
As per the report:
“The reporters of the 21st Century Business Herald have learned from various sources that Sun is still in the territory [China]. On the cancellation of the appointment [lunch with Buffett], there are still several questions to be answered.”
The question on why Justin Sun canceled his lunch with Buffett still hovers in the cryptocurrency community after so much hype. However, as noted by Business Herald, Sun was unable to leave China after the damning accusations. Sun took to social media explaining that the lunch date cancellation was due to sudden health issue; kidney stones.
On his side, Sun said that the allegations are entirely fabricated since Tron operates from Singapore and not China. Unfortunately, in his response, Sun never mentioned his current physical location. In his Weibo account, Justin said:
“The illegal fundraise accusation is wrong. Tron compiled with regulators and refunded investors on September 20, 2017. [This was] immediately after the order of a ban on ICOs from seven ministries in China. …The Tron Foundation is based in Singapore in compliance with local regulations and laws …and does not involve any flow of capital, or any crypto or fiat currency onramp.”
Justin ‘allowed’ victims to be defrauded
In the recent past, Sun was accused by victims of a Chinese Ponzi scheme for being silent when they were defrauded in his name. For context, in the Chinese market, Tron is known as ‘Wave Field’, and the scammers used ‘Wave Field Super Community.’ It later abruptly closed shop with investors being scammed more than 30 million US dollars. Additionally, one of the victims committed suicide.
A Twitter user said:
“A group was using a derivative of Tron’s Chinese name to conduct a Ponzi type of scam, which many Tron enthusiasts fell for losing millions. One victim committed suicide. Victims are blaming Tron & Justin Sun for not confirming whether the group was working with Tron.”
To further smear Sun in the world of illegal activities, Sun warned Chinese investors they should be extra careful to avoid being lured by schemes using Tron’s name. However, he did not explicitly mention any such schemes. One day after the warning, Wave Field Super Community evaporated into thin air.
