- Archblock founder files a lawsuit alleging Justin Sun covertly bought the stablecoin TrueUSD (TUSD).
- The lawsuit compounds Sun’s existing legal troubles, including SEC charges related to alleged misconduct around TRX and BTT.
The Lawsuit Against Sun’s Alleged Covert Operations
In an intriguing turn of events, the founder of Archblock has filed a lawsuit claiming that TRON’s founder, Justin Sun, secretly purchased considerable amounts of the stablecoin TrueUSD (TUSD). This allegation, which further stirs the pot of Sun’s protracted legal issues, has seen the TRON founder steadfastly maintaining his innocence amid intensifying rumors and speculation about his alleged secret ownership of TUSD.
The lawsuit purports that Sun employed a slew of entities and individuals to facilitate this acquisition, effectively concealing his involvement in the process.
Persistent Rumors Around Sun’s Ownership of TUSD
Introduced in 2018 by TrueToken, TrueUSD (TUSD) sustains its peg to the dollar through corresponding USD reserves held in escrow accounts. Despite being the smallest of the Big Five stablecoins by market capitalization, according to CoinMarketCap, TUSD remains in the limelight due to persisting rumors surrounding Sun’s alleged ownership.
These speculations have only been further bolstered by Sun’s supposed request that details of any acquisition remain private – an ironic twist in the cryptocurrency industry often criticized for its opacity. In the wake of these allegations, TUSD’s price, which is designed to remain pegged to the US dollar 1:1, showed no significant fluctuations.
Additional Legal Troubles for Sun
Sun’s alleged covert TUSD purchase is not the only controversy he is currently facing. Earlier this year, the Securities and Exchange Commission (SEC) charged Sun and three associated companies – Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc., with illegal offering and selling of crypto asset securities Tronix (TRX) and BitTorrent (BTT).
Moreover, the SEC alleges that Sun and his companies engaged in extensive wash trading to artificially inflate the TRX’s trading volume and manipulate its prices. They are also accused of scheming to pay celebrities to promote TRX and BTT without disclosing their compensation, thereby creating a misleading perception of genuine endorsement.