Community In An Uproar as Sun’s Tron Foundation Granted $2M Subsidy from US CARES Act
- Justin Sun’s TRON foundation has allegedly been awarded $2 million in subsidies, courtesy of the US CARES package.
- The $2 Trillion act was passed to inject cash flow into the US economy amid global pandemic.
Justin Sun and the TRON Foundation, which he owns, have been thrust into controversy (surprise, surprise.. examples include: here, here, here, here, here, here, and so on) after reports emerged that they received the money from the US stimulus package. This is according to a Chinese WeChat platform post published on Wednesday.
A similar post further discloses that TRON received at least 17 million Yuan, roughly $2.3 million, from the US government's CARES program. There is also no clause that compels the receivers of the subsidies to pay back at any time. The report indicates that they expect the second batch of subsidies to be disbursed to the TRON foundation soon.
We need to talk about this. In China Justin Sun appears to be claiming that Tron successfully applied for COVID-19 small business relief money from the United States government. pic.twitter.com/B3EKQHJLpD
— Matthew Graham (@mattysino) May 6, 2020
There are still some in the community that believe the PPP loan was awarded to a company that deserves it –
the math checks out to me. If its reported he had 80 employees for a company based out of San Francisco, in one of the highest growth industries (blockchain in tech) then they are all making at least $
100k or they would not have worked there.
80 * 100K * .25 = 2mm
— Eric Lamison-White 🌎 (@1blockologist) May 6, 2020
Historic Stimulus Package
The stimulus package act, dubbed CARES, was passed towards the end of March. The package, which totaled $2 trillion was meant to provide immediate cash flow for businesses in the US that were affected by the global pandemic. It is reported to be the biggest slice of the legislation stimulus package in the US ever.
This has drawn massive criticism via social media outlets. A lot of businesses based in the US have faced the uphill struggle in trying to claim the subsidies due to competitive requests (or banks stealing funds).
The Federal Reserve has also come under fire as they came under fire for “rewarding the worst abusers” in a post. A number of Blockchain firms have been rejected by this subsidy program, for example. Bigger firms are allegedly leveraging their close relations with banks to leapfrog other, smaller business applications.
The TRON foundation was not keen to respond to the issue. Ryan Dennis a TRON rep cited that they were unable to comment on the financial matter regarding the private entity.
He, however, emphasized that TRON reputes itself on conducting legal financial practices of the respective jurisdiction they are operating.
TRON’s Presence in the US
TRON migrated its offices to San Francisco after Beijing authorities put a lid of all ICO’s and locally operated crypto exchanges in 2017. This was seen as an attempt to control the financial systems in place.