Tron Price Plunges as Justin Sun Denies Money Laundering Accusations

Tron founder and CEO Justin Sun denied illegal fundraising, porn transaction facilitation, gambling and money laundering accusations in a post on Chinese social media platform Weibo published on July 23.

Chinese media accuses Tron founder of money laundering

Earlier today, Chinese media 21st Century Business Herald claimed in an article that unspecified sources informed its reporters that Justin Sun is still on Chinese territory. The website also cites concerns over alleged pornography-related transactions in his Peiwo social media, fundraising and gambling.

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.

In a Tweet, Sun previously declared that the reason why he decided to reschedule the meeting is a medical condition. In the aforementioned Weibo post, Justin addresses the accusations.

Sun denies involvement in illegal practices

According to his post, the illegal fundraising accusations are false since — after the Chinese government banned initial coin offerings in September 2017 — the Tron Foundation returned the funds. Sun also says that also the money laundering accusations have no basis since the Tron Foundation is located in Singapore, complies with local regulations, and does not involve fiat on or off-ramp services.

He also noted that, when it comes to Peiwo allegedly facilitating illegal porn-related transactions, the company collaborates with regulators, monitors users and tries to ensure that the content is positive. 

Sun also more broadly addressed the accusations of facilitation of illegal activities by pointing out that Tron is a decentralized internet network and that the Foundation opposes the unlawful use of the protocol. Lastly, Sun declares:

“We understand the concerns over the development of blockchain technology, and we are willing to open up and communicate to jointly promote the development of blockchain technology in China.”

TRX price plunges more than 15%

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.

Tron 1-Day Chart

Tron 1-Day Chart | Source: Coin360

As Cointelegraph reported earlier this month, Sun previously invited more notable figures from the crypto industry to attend his $4.6 million dollar lunch with Warren Buffett.