The blockchain protocol Chain is contemplating legal proceedings against TRON founder Justin Sun, amid serious allegations of market manipulation. Sun had previously accused Chain of potentially jeopardizing cryptocurrency exchange users, particularly due to issues involving high leverage and contracts.
What Legal Measures Are Being Considered?
In response to heated discussions on the X platform, Chain’s officials confirmed their plans to pursue legal action against Sun. He asserted that Chain’s operations threaten exchange users and suggested reporting them to regulatory bodies like the SEC and DOJ.
Sun has called on major exchanges—including Coinbase and Kraken—to investigate Chain’s conduct, stressing concerns about high leverage and contract utilization. Despite facing multiple serious allegations over the years, Sun remains a significant player within the cryptocurrency landscape.
Is Market Activity Fueling the Controversy?
This dispute unfolded following a dramatic surge in the market value of the XCN token, which skyrocketed by 149% in just one day and nearly 400% within a week. Sun’s allegations have further complicated matters, suggesting that these price fluctuations may be tied to manipulation.
- Chain emphasizes it does not trade or manipulate the XCN token.
- The company is considering legal actions against Justin Sun.
- Both parties will need to present careful evidence regarding the allegations.
- This situation underscores the regulatory vulnerabilities within the cryptocurrency sector.
Chain, originally founded in 2014, has secured over $40 million in investments from firms like Pantera Capital. After its acquisition by Stellar in 2018, it restructured itself as Chain, focusing on decentralized blockchain technology initiatives. The ongoing friction between Chain and Sun highlights significant tensions in the cryptocurrency market, with both parties likely to navigate the complexities of proving their claims carefully.
