Chain plans to sue Justin Sun over market manipulation accusations


Blockchain protocol Chain is considering legal action against TRON founder Justin Sun after he accused the company of market manipulation.

Chain, a blockchain firm backed by over $40 million from investors including Pantera Capital and Citigroup,has threatened legal action against Sun following allegations of market manipulation.

In an X post on Jan. 24, Sun claimed that Chain was using “high leverage and contract that could cause serious harm to many exchange users.”

https://twitter.com/justinsuntron/status/1882741054618628385?s=20

While Sun did not provide details about the alleged manipulations, he warned crypto exchanges to exercise caution and stated that he would “report their illegal activities to the SEC and DOJ for further investigation.” He also tagged major exchanges, including Coinbase, Kraken, and Bybit, urging them to take action.

Chain rejects market manipulation accusations

Chain was quick to respond, rejecting Sun’s allegations. In a follow-up post, the company stated that it is “not actively engaged in ANY trading of XCN, nor involved in ANY market manipulation directly or indirectly.” Chain further clarified that the XCN token is managed by OnyxDAO and announced plans to explore “legal remedies” against Sun over his claims.

Soon after Chain responded, Sun fired off another X post. This time, the TRON founder tagged OnyxDAO and called on the U.S. Securities and Exchange Commission and the Department of Justice to look into the situation. The accusations came right after the XCN token saw a big price jump, as its price soared 149% in one day and nearly 400% in a week, as crypto.news reported earlier.

Founded in 2014, Chain has raised over $40 million in funding from Khosla Ventures, Pantera Capital, Capital One, Citigroup, Fiserv, Nasdaq, Orange, and Visa, the firm claims on its website. In 2018, Stellar acquired Chain to form Interstellar, a commercial arm of the Stellar Foundation. In 2020, Chain was re-acquired.





Chain, the leading blockchain company, has announced plans to sue Justin Sun, founder of TRON and BitTorrent, over accusations of market manipulation. The lawsuit comes after Chain conducted a thorough investigation and found evidence that Sun had engaged in illegal activities to artificially inflate the price of TRON and BitTorrent tokens.

In a statement released by Chain, they expressed their commitment to upholding the integrity of the cryptocurrency market and holding accountable those who seek to manipulate it for personal gain. The company stated that they will not tolerate any form of market manipulation and will take all necessary legal actions to ensure justice is served.

Justin Sun has yet to respond to the allegations, but Chain’s lawsuit is expected to bring further scrutiny to his business practices. This development has sent shockwaves through the cryptocurrency community, with many calling for increased regulation and oversight to prevent similar incidents in the future.

As the lawsuit unfolds, the cryptocurrency market will be closely watching to see how this case will impact the industry as a whole. Stay tuned for updates on this developing story.

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