TRON founder Justin Sun has reportedly transferred a total of 2,200 ETH (equivalent to around $4.6 million) to Binance and Huobi exchanges, raising suspicion among market watchers. This move comes after rumors surfaced that Sun was arrested in Hong Kong.
Justin Sun Withdraws Funds After Arrest Rumors
While Sun quickly dismissed these rumors with a tweet containing the phrase "4" meaning "Ignore FUD, fake news, hacks, etc", community concern remained, leading to a significant sell-off in TRON's native cryptocurrency.
Justin Sun transferred 2,200 ETH ($4.6 million) to Binance and Huobi today.
— Lookonchain (@lookonchain) April 14, 2023
Recent rumors of arrests and subsequent Sun's money transfer have raised questions as to whether the two incidents are linked.
While the exact reason for Sun's transfer remains unclear, it may be linked to ongoing speculation about his arrest and potential legal issues.
On March 22, 2023, the Securities and Exchange Commission (SEC) filed a criminal complaint against Justin Sun and three wholly owned companies. These companies are Tron Foundation Limited, BitTorrent Foundation Ltd. and Rainberry Inc. (formerly BitTorrent).
These charges relate to the unregistered offering and sale of crypto-asset securities Tronix (TRX) and BitTorrent (BTT).
Additionally, the SEC accused Sun and its companies of fraudulently manipulating the secondary market for TRX through extensive wash trading and orchestrating a scheme to pay celebrities to promote TRX and BTT without disclosing their compensation.
*Not investment advice.