The founder of the Tron blockchain project, Justin Sun, is facing harsh criticism in his home country of China after an alleged Ponzi scheme ended abruptly last week.
According to Chinese website Nuclear Finance, a pyramid-like investment scheme known as the “Wave Field Super Community” has been associated with Tron. In China, Tron and its TRX cryptocurrency is known as “Wave Field.
The outlet further suggests that Sun cannot leave the country, and this is the real reason why Sun decided earlier today to postpone the Warren Buffett Lunch and press conferences to an unspecified date. The outlet rhetorically asks whether Sun will be able to meet Buffett without first resolving the aforementioned concerns.
Sun denied the accusations, stating according to a very rough translation:
“The illegal network fundraising was not true. After the four ministries issued the regulatory requirements on September 4, 2017, TRON actively cooperated with the regulatory authorities to complete the retiring work on September 20, which was highly recognized by the regulatory authorities.”
That statement was made seven hour after Sun said:
“I am being treated in the hospital for sudden kidney stones. I canceled the lunch with Mr. Buffett for the same reason. At present, the physical condition is all stable and in the recovery period.”
Tron reacted on July 1, by posting a warning on Chinese social media platform Weibo, or on the same day as a suicide note, reportedely related to the scam, started circulating online in China. Also, after reports about the scam have started to appear in the media, Sun did post a warning on Twitter on July 5, saying there are Ponzi schemes using the Tron name. However, he did not comment specifically on the Wave Field Super Community.
As a leading blockchain protocol, there are Ponzi schemes using #TRON, #BitTorrent or #uTorrent names like “MMM #bitcoin, #Ethereum pyramid & #EOS ecosystem schemes”. We will never ask you to send money. Be careful & hodl your $TRX/ $BTT
— Justin Sun (@justinsuntron) July 5, 2019
By press time, Tron (TRX) price plunged by about 16.58% over the last 24 hours, trading at about $0.024, according to Coin360 data.