Benzinga - Blockchain technology company Archblock is suing Tron (CRYPTO: TRX) founder Justin Sun for allegedly acquiring TrueUSD (CRYPTO: TUSD) through questionable methods.
There were rumors that Sun secretly owned the stablecoin project. Both Sun and TrueUSD denied these claims.
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An anonymous Archblock founder filed the lawsuit and claims that Sun hid his involvement by using various entities and individuals to carry out the purchase, while using his TUSD acquisition to manipulate the crypto market.
Sun has not responded to Benzinga's request for comment.
Sun's Legal Troubles: In March, the U.S. Securities and Exchange Commission accused Sun of paying celebrities to illegally promote Tronix and BitTorrent without disclosing that they were compensated for doing so. Those celebrities included Lindsay Lohan, Jake Paul, “Soulja Boy” DeAndre Cortez Way, adult film actress Michele Mason, Miles Parks McCollum (aka Lil Yachty), Shaffer Smith (aka Ne-Yo) and Aliaune Thiam (aka Akon).
He was previously accused of offering and selling Tronix and BitTorrent through several unregistered bounty programs.
It was reported that between April 2018 and February 2019, he instructed his employees to engage in over 600,000 wash trades of TRX.
This involves simultaneously buying and selling numerous cryptos to create the illusion of high trading volume and manipulate the price.
This was done between two crypto trading platform accounts he controls.
It was reported that between 4.5 million and 7.4 million TRX wash trading was facilitated daily.
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