Tron’s Justin Sun Faces Backlash Due to Scam in China
The founder of the Tron blockchain project, Justin Sun, is facing harsh criticism in his home country of China after an alleged Ponzi scheme ended abruptly last week.
According to Chinese website Nuclear Finance, a pyramid-like investment scheme known as the “Wave Field Super Community” has been associated with Tron. In China, Tron and its TRX cryptocurrency is known as “Wave Field.”
The Wave Field Super Community reportedly managed to collect at least CNY 200 million (c. USD 29 million) from investors before it unexpectedly shut down, leaving the victims with no way to withdraw their money.
Chinese investors in the pyramid scheme have reportedly demanded that Sun disassociate himself and Tron from the fraudulent Wave Field Super Community. According to the accusers, Tron has benefited from the increase in interest and trading volume for the TRX token, as victims used TRX to invest in the fraudulent Wave Field Super Community.
Tron reacted on July 1, by posting a warning on Chinese social media platform Weibo, or on the same day as a suicide note, reportedely related to the scam, started circulating online in China. Also, after reports about the scam have started to appear in the media, Sun did post a warning on Twitter on July 5, saying there are Ponzi schemes using the Tron name. However, he did not comment specifically on the Wave Field Super Community.
Despite being widely circulated in Chinese WeChat groups, the suicide note from reportedely a single mother who had borrowed money from a friend at a high interest and was left unable to pay back the loan, has not yet been independently verified.
Tron did not respond to our request for comment.