TRON’s CEO Debunks Association with Billion Dollar Ponzi Scheme Scam

Cryptocurrency

While responding to an allegation that Tronfoundation and BitTorrent are involved in a billion-dollar Ponzi-scheme scam that defrauded thousands of investors in China, Justin Sun, TRON’s CEO, says both companies are “fine.” According to the CEO, preparations were being made to launch BitTorrentSpeed on July 8, so people should stop publicizing fake news and pictures.

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Justin Sun Says Tronfoundation and BitTorrent are Fine

In a tweet on July 8, 2019, Justin Sun debunked the rumors that began earlier in the day. The CEO claims that Tronfoundation and BitTorrent are fine and plans are currently being made to launch BitTorrentSpeed, an engine that will reward BitTorrent users with BitTorrent (BTT). Sun further outlined that people should stop disseminating fake news and pictures about the blockchain company.

The news, on the other hand, which was circulated by several reputable media outlets, informed that Chinese police raided TRON’s office in Beijing, China. The raid was a result of a Ponzi-like scheme called Wave Field Super Community, defrauding hundreds of thousands of its investors. The scheme began in January this year and ended last week. It is believed that its organizers made away with at least 200 million CNY ($30 million) of investors’ funds.

TRON’s part in all this is that the scam took advantage of the name “Wave Field,” which is usually used to describe the blockchain company in China. As a result of using the same brand name that TRON is known for in China and making claims that the scheme is TRON’s Super Representative, investors were led to believe that it is also owned or supported by TRON.

Sun Refused to Disassociate TRON and BitTorrent from the Scam

Similarly, Justin Sun, who was asked in the past to confirm his company’s relationship with the platform, refused to do so and only spoke up on July 1, 2019, a day after the scam packed up. On the said date, Sun posted on social media platform Weibo warning investors to be wary of Ponzi-like schemes that took advantage of the TRON name. However, he did not outrightly point out Wave Field Super Community as one of them.

There are now claims that TRON’s CEO had refused to publicly disassociate TRON and its other company, BitTorrent, from the scheme because TRX, TRON’s crypto-asset benefitted from it. The company’s cryptocurrency was allegedly purchased and then dumped into the scheme in hopes of making huge returns.

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Single Parent Purportedly Commits Suicide After Loss to Ponzi Scheme

Aside from the loss of funds on the part of investors, it is alleged that a woman named Xia Bing, who was also an investor in the scheme, committed suicide. On July 1, 2019, her photographs and suicide note went viral on messaging website WeChat. The deceased is reportedly a middle-aged single parent who borrowed money from a neighbor to invest in the fraudulent scheme.

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Featured image: DepositPhotos © sdecoret

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