Justin Sun, founder of the Tron blockchain project, has responded to accusations that he and his team at Tron were running a ponzi scheme that may have defrauded its victims out of as much as $30 million.
Sun Tweeted on Friday, warning about the possibility of ponzi schemes on all blockchain platforms and said: “We will never ask you to send money.”
Wave Field
Sun has faced much criticism in China, his home country, after a pyramid investment scheme linked with Tron called the “Wave Field Super Community” shut down unexpectedly last week leaving investors with no way to withdraw their money.
In China the Tron network and associated TRX tokens are popularly know as “wave field”.
The Wave Field Super Community allegedly collected 200 million in Chinese yuan – nearly $30 million – before disappearing.
Victims were asked by the pyramid scheme to invest TRX tokens into the Wave Field Super Community, and Sun has been accused by some of benefiting from the additional interest in the Tron token that the scam provided.
Sun Criticised
Chinese website Nuclear Finance appears to be the medium through which Sun was questioned most rigorously about his knowledge of the scam.
“The wave field super community began to receive attention at the beginning of this year,” Nuclear Finance reported, adding:
Relying on the popularity of the wave field and marketing of MLM, it has quickly gained many users. During this period, many users asked the founder of the wave field Sun Yuchen (Justin Sun) the relationship between the project and the wave field. The latter did not respond directly.
On Friday, however, Sun finally broke his silence, but did not specifically mention the Wave Field Super Community. He posted the following message on his Twitter feed:
As a leading blockchain protocol, there are Ponzi schemes using #TRON, #BitTorrent or #uTorrent names like “MMM #bitcoin, #Ethereum pyramid & #EOS ecosystem schemes”. We will never ask you to send money. Be careful & hodl your $TRX/ $BTT
— Justin Sun (@justinsuntron) July 5, 2019