Archblock sues Tron Founder Justin Sun over shady TrueUSD acquisition

News | July 19, 2023 By:

Blockchain technology company Archblock has filed a lawsuit against Tron founder Justin Sun, alleging that he acquired TrueUSD through questionable methods.

Persistent rumors and speculation within the crypto community have long surrounded Sun’s ownership of TrueUSD. While both Sun and TrueUSD have denied these allegations in the past, the recent lawsuit introduces fresh claims, asserting that Sun used a network of entities and individuals to discreetly acquire significant quantities of TUSD while concealing his involvement. Screenshots shared on social media allegedly depict Sun requesting confidentiality regarding the acquisition, raising concerns about accountability and regulatory compliance.

This legal dispute adds to Sun’s already troubled history, as he has faced previous legal troubles related to his cryptocurrency ventures.

In March, the U.S. Securities and Exchange Commission (SEC) accused Sun of paying celebrities to unlawfully promote Tronix and BitTorrent without disclosing their compensation. Notable figures such as Lindsay Lohan, Jake Paul, and Soulja Boy were among those implicated in the scandal. The SEC’s allegations shed light on Sun’s alleged use of unregistered bounty programs to offer and sell Tronix and BitTorrent.

Another concerning revelation was that Sun had instructed his employees to engage in over 600,000 wash trades of TRX between April 2018 and February 2019. Wash trading involves simultaneously buying and selling cryptocurrencies to create the illusion of high trading volume and manipulate prices. Sun reportedly executed these trades between two crypto trading platform accounts under his control, facilitating between 4.5 million and 7.4 million TRX wash trades on a daily basis.

These controversies have now led to the lawsuit brought by Archblock, claiming that Sun employed similar tactics in acquiring TrueUSD.

As the lawsuit progresses, its outcome will shape discussions surrounding accountability, trust, and the integrity of the market. It remains to be seen how these allegations will impact Sun’s standing within the industry and whether they will result in further regulatory measures to safeguard investors.