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  • Thursday, 29 February 2024
DOJ charges exiled Chinese businessman for allegedly defrauding online followers out of $1 billion

DOJ charges exiled Chinese businessman for allegedly defrauding online followers out of $1 billion

The Department of Justice (DOJ) has charged a Chinese businessman who is currently living in exile in the United States with defrauding his online followers out of more than $1 billion. The businessman, known as "Justin Sun," is the founder of TRON, a cryptocurrency platform that he promoted heavily on social media.

According to the DOJ, Sun allegedly used his social media influence to falsely promote TRON as a successful and profitable cryptocurrency investment opportunity. He also allegedly engaged in a series of fraudulent activities to manipulate the price of TRON and enrich himself and his associates at the expense of investors.

The DOJ's indictment alleges that Sun engaged in a number of deceptive practices, including creating fake accounts to increase TRON's popularity on social media, artificially inflating the price of TRON through wash trading, and misleading investors about the company's financial performance.

Sun is also accused of misappropriating funds from the TRON Foundation, a non-profit organization he established to promote the development and adoption of the TRON platform. The DOJ alleges that Sun diverted millions of dollars from the foundation's accounts to pay for personal expenses, including the purchase of a $57.5 million mansion in California.

If convicted, Sun could face up to 20 years in prison for each of the charges against him, which include wire fraud, securities fraud, and money laundering. He could also be ordered to pay millions of dollars in fines and restitution.

The indictment is the latest in a series of high-profile cases involving cryptocurrency fraud and manipulation. In recent years, regulators around the world have stepped up efforts to crack down on fraudulent cryptocurrency schemes, which are often marketed through social media and other online channels.

The case against Sun also highlights the risks associated with investing in cryptocurrencies, which are largely unregulated and highly volatile. Investors are advised to exercise caution and to do their own research before investing in any cryptocurrency.

Sun, who is currently living in San Francisco, has denied the allegations against him and has vowed to fight the charges in court. In a statement released through his lawyers, he accused the DOJ of pursuing a politically motivated case against him and denied any wrongdoing.

The case against Sun is expected to be closely watched by the cryptocurrency industry and by investors around the world. It remains to be seen how the case will play out in court and what impact it will have on the future of TRON and other cryptocurrency platforms.

 

The Department of Justice (DOJ) has charged a Chinese businessman who is currently living in exile in the United States with defrauding his online followers out of more than $1 billion. The businessman, known as "Justin Sun," is the founder of TRON, a cryptocurrency platform that he promoted heavily on social media.

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