Justin Sun In Trouble: Tron Founder Accused of Money Laundering and “Restricted” By Chinese Government
It seems like Justin Sun is having a pretty bad week. The founder of the Tron Foundation has just decided to postpone his anticipated lunch with Warren Buffett. While Sun affirmed that he currently had some health issues, there are news surfacing that the problem may be considerably bigger than that.
A media outlet called the 21st Century Business Herald has recently denounced Sun as being part of an illegal fundraising event to raise money to Tron. As you may know, Justin Sun is a Chinese resident and his country does not see cryptos in a very positive light. In order to make matters even worse than they were at first.
Tron is also linked to gambling services which are considered illegal in China and there are also some accounts of people accusing Sun of being a part of Peiwo, a social app that was accused of being involved with illegal pornography.
All these accusations have made Sun’s life more difficult as awareness about him was raised because of the launch with Warren Buffett. According to some sources, the Chinese government is restricting Justin Sun from leaving the country. He was not arrested, but it seems that he cannot leave mainland China while the investigation is underway.
The lunch with Buffett, which cost $4 million USD, may not even happen now. Sun affirmed that he was suffering from kidney stones, but these media outlets are not buying his story.
Sun has also denied any kind of involvement in all the accusations made against him by the 21st Century Business Herald. According to him, the claims of illegal fundraising are plain wrong because the company complied with the orders from the regulators and all investors were refunded immediately after Initial Coin Offerings (ICOs) were banned in the country.
He also affirmed that the Tron Foundation was based in Singapore and that it was also compliant with all the local legislation there as well.
Sun also talked about Peiwo, affirming that the company has often collaborated with all the regulators in order to ensure that no illegal porn-related content is posted on the network. However, he pointed out that the system is decentralized, so the foundation does not have direct control over what is posted there, but is willing to solve all the problems that may arise.
According to a recent report made by The Block Crypto, Sun was charged bt the special committee on internet safety regarding his links with pornography, gambling and money laundering. The committee is suggesting that Sun should be arrested, according to reports.
However, some sources interviewed by The Block Crypto have affirmed that Sun is actually in San Francisco right now, which may indicate that he is not in China but will be detained as soon as he gets there. In case this information is true, the reason to postpone the lunch was probably not to draw the attention of the Chinese regulators.
Tron Plunges After Controversy
At the time of this report, Tron (TRX) was down by 16.58% within the last 24 hours. It was trading at around $0.024 USD per token. It seems that the accusations really hit the price, so we may not expect to see a recovery before Sun is able to clear out this trouble.