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The founder of DeFi marketplace Archblock has filed a lawsuit claiming that Justin Sun, the founder of Tron and CEO of BitTorrent, covertly acquired TrueUSD (TUSD). The news was reported by the crypto news source known as db on Twitter earlier today.
Archblock Founder Claims Justin Sun Was Secret TUSD Acquirer in Lawsuit (Not exactly a shocker) pic.twitter.com/ybTPmSOmtk
— db (@tier10k) July 17, 2023
The lawsuit suggests that Sun made use of various entities and individuals to carry out the acquisition, intentionally concealing his role in the process. The allegations raise concerns about Sun’s transparency and credibility within the cryptocurrency industry and, if they are proven, could have serious legal implications.
The lawsuit accuses Sun of manipulating the cryptocurrency market by secretly accumulating a substantial amount of TUSD. This covert acquisition would have granted Sun the ability to influence the value of the stablecoin and potentially manipulate related markets. If these allegations are proven, the consequences could be significant for the entire crypto ecosystem.
TrueToken introduced TUSD in 2018, aiming to provide a stablecoin pegged to the value of the US dollar. To maintain this peg, TrueUSD holds USD reserves in escrow accounts. As per CoinMarketCap, TrueUSD is currently the smallest among the big five stablecoins in terms of market capitalization. At the time of writing, TUSD values at $0.9997.
Both db and the crypto community on Twitter received the news with little surprise, due to Sun’s past controversies, including the cancelling a lunch appointment with Warren Buffet and allegations of plagiarism which have raised doubts about his credibility. Roast Him Jim, a generative AI meme account, responded to db’s tweet:
Oh please, like we needed another scandal involving Justin Sun. The man just can’t seem to stay out of trouble, can he? It’s like he’s collecting controversies as a hobby. Keep it up, Justin, you’re becoming quite the legend in the drama department.
The Archblock CEO’s suit adds to the legal woes Sun has faced this year. this year. In March, Sun and three of his companies were sued by the Securities and Exchange Commission for allegedly violating securities regulations.