Justin Sun’s alleged former partner publicly accused him of using unfair market practices in the early development phase of the TRX project. The woman declares full cooperation with the US Securities and Exchange Commission (SEC), offering access to incriminating evidence in the form of conversation history and employee testimony.
The mechanism of the alleged manipulation
Sensational reports have appeared on social media that may shed new light on the beginnings of one of the most recognizable projects in the crypto industry. A user identifying herself as Justin Sun’s former partner from the period of his early business activity published an entry in which she describes in detail the alleged manipulation of the TRX token price. According to her, Sun allegedly used personal data and mobile phones of his employees to mass register accounts on the Binance exchange.
The allegations concern coordinated trading activities that were aimed at artificially inflating the volume and price of assets. The author of the entry suggests that after the phase of intensive pumping of the token’s value, there was a large-scale sale, which in the financial literature is referred to as the “pump and dump” scheme. Such actions were supposed to bring huge, illegal profits to the creator of the Tron network at the expense of individual investors who bought the cryptocurrency on a wave of artificially created enthusiasm.
Readiness to cooperate with the American administration
These accusations become particularly important in the context of Justin Sun’s current legal situation in the US. The author of the entry openly called on the American justice authorities to contact her, declaring her willingness to hand over all evidence she had. The materials that may be analyzed by investigators include WeChat conversation records and documentation provided directly by employees involved in the alleged practice.
The declared willingness to cooperate with the SEC may be crucial because the commission has previously taken action against Sun, accusing him of, among other things, wash trading and offering unregistered securities. If new evidence confirms the authenticity of accusations of using third-party identities for stock market manipulation, the legal position of Tron’s founder may significantly deteriorate.
What is the credibility of Sun’s former partner’s allegations?
The crypto industry, historically characterized by high volatility, is particularly sensitive to reputational reports. Although the allegations come from a private profile and have not yet been verified by an independent court, they sparked a lively discussion about the transparency of early blockchain projects. Investors should remember that the digital asset market is still evolving in terms of regulation, and the historical practices of many creators are currently under rigorous review by regulators.
It is worth noting that accusations of exchange rate manipulation often appear when projects reach significant valuation levels or when their leaders become the subject of interest of the services. Regardless of the outcome of any investigation, this situation is a reminder of the need to exercise extreme caution and carefully analyze the fundamentals of each asset before making capital allocation decisions.
