The co-founder and former CEO of Tron, Justin Sun has been accused of sharp practices involving investors’ funds. According to a report by The Verge, Sun, who is also the CEO of Bit-torrents and Poloniex was involved in some infractions that could lead to prosecution. Sun was the co-founder of Tron and moved to the United States in 2017 after the Tron ICO which did not get the support of the government of the People’s Republic of China.

According to the report, the activities of Sun that may bring prosecutors to his doorsteps include tax evasive tactics and a defalcation of up to 300 bitcoins belonging to Poloniex customers. According to Christopher Harland-Dunaway, the writer of the article, Sun has always found ways around legal challenges.

Market Manipulation of TRX Token

Another allegation against Sun is that he has been involved in insider trading. This was confirmed by employees of the exchange who said that the Tron team bought  large amounts of the TRX token prior to the public announcement in a move that ensured that they made most of the profit through the market manipulation process. The report stated that the team behind the Tron ICO manipulated the process behind the scene by acquiring a large volume of the token which they sold at a reasonable profit contrary to fair practice principles.

Orders Illegalities

Insiders in the organizations run by Sun reported that Sun routinely orders illegalities. For instance, when the company wanted to sell the BitTorrent tokens, Tron insisted that the BTT be classified as a utility token. The report alleged that David Labhart, BitTorrent’s compliance officer refused to write a report, describing the token as a utility token, contrary to the instruction given by Justin Sun. it further stated that Sun’s multiple citizenship could be an attempt to escape prosecution. Tron is presently an ambassador and permanent representative of Grenada.

Another issue raised in the report is that Poloniex has a shady practice of reducing KYC standards. The exchange was also registered in Seychelles despite the fact that most of its staff operate from Boston. It stated that offshore registration of the exchange was basically in a bid to evade liabilities. The report stated that the project, “Operation Couch Cushions” was an initiative of Sun used to recover 300 BTC that belonged to customers of the exchange. However, this fund was converted to personal use by Sun.

Justin Sun Responds

After the report was released, Sun called it a fabrication and threatened to sue the news site. Sun added that Poloniex operates a state-of-art KYC system and does not offer its services to US residents. He also said that the exchange’s license wasn’t from Seychelles. He added that as an ambassador of Grenada, that he operates based on the highest standards.