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Justin Sun, the founder of TRON, has reportedly transferred a sum of 2,200 ETH (equivalent to approximately $4.6 million) to Binance and Huobi exchanges, raising suspicions among market observers. This move comes after rumors surfaced about Sun's arrest in Hong Kong.
Although Sun quickly dismissed these rumors with a tweet stating "4," which stands for "Ignore FUD, fake news, attacks, etc.," the community's apprehension persisted, leading to a significant sell-off of TRON's native cryptocurrency.
Justin Sun transferred 2,200 $ETH ($4.6M) to #Binance and #Huobi 1 hour ago.https://t.co/28ytIh92dY pic.twitter.com/tWdX8Kmr8p
— Lookonchain (@lookonchain) April 14, 2023
The recent arrest rumors and Sun's subsequent funds transfer have raised questions about whether the two events are connected. While the precise reason for Sun's transfer remains unclear, it could be tied to the ongoing speculation surrounding his arrest and potential legal issues.
On March 22, 2023, the Securities and Exchange Commission (SEC) announced charges against Justin Sun and three of his wholly-owned companies: Tron Foundation Limited, BitTorrent Foundation Ltd. and Rainberry Inc. (formerly BitTorrent).
These charges are related to the unregistered offer and sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT). Furthermore, the SEC accused Sun and his companies of fraudulently manipulating the secondary market for TRX through extensive wash trading, as well as orchestrating a scheme to pay celebrities to promote TRX and BTT without disclosing their compensation.
The SEC's announcement has undoubtedly cast a shadow over Sun's reputation and the future of the TRON project. The sell-off of TRON's native cryptocurrency and the decision by several exchanges to delist the token indicate a loss of confidence in the project and its leadership. The timing of Sun's ETH transfer to Binance and Huobi could be an attempt to secure funds amid the ongoing legal turmoil and uncertainty surrounding his arrest rumors.