Blockchain Company Archblock Sues Tron Founder Justin Sun over Alleged Acquisition of TrueUSD through Questionable Methods
WHAT YOU SHOULD KNOW
- Archblock, a blockchain technology company, has filed a lawsuit against Tron founder Justin Sun, accusing him of secretly acquiring TrueUSD. Sun and TrueUSD deny the allegations.
- The lawsuit alleges that Sun concealed his involvement in the acquisition by using various entities and individuals to carry out the purchase, while also manipulating the crypto market through the TUSD acquisition.
- Justin Sun has previously faced legal issues, with the U.S. Securities and Exchange Commission accusing him of illegally paying celebrities to promote Tronix and BitTorrent without disclosure.
Archblock, a blockchain technology company, has filed a lawsuit against Justin Sun, the founder of Tron, alleging that he acquired TrueUSD through questionable means. The lawsuit was filed by an anonymous Archblock founder, who claims that Sun concealed his involvement in the acquisition by using various entities and individuals. The lawsuit also accuses Sun of using the TUSD acquisition to manipulate the crypto market.
Sun has faced legal troubles in the past. In March, the U.S. Securities and Exchange Commission (SEC) accused him of paying celebrities to illegally promote Tronix and BitTorrent without proper disclosure. The celebrities involved included Lindsay Lohan, Jake Paul, “Soulja Boy” DeAndre Cortez Way, adult film actress Michele Mason, Miles Parks McCollum (aka Lil Yachty), Shaffer Smith (aka Ne-Yo), and Aliaune Thiam (aka Akon). Sun was also previously accused of offering and selling Tronix and BitTorrent through unregistered bounty programs. Additionally, between April 2018 and February 2019, it was reported that he instructed his employees to engage in over 600,000 wash trades of TRX to manipulate the price and create the illusion of high trading volume.
Sun has not responded to requests for comment from Benzinga regarding the recent lawsuit. The legal action against him is seen as significant, given his prominent role in the crypto industry and the ongoing regulatory scrutiny on cryptocurrency projects.
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