Crypto-focused YouTube channel Discover Crypto has issued comments about the future of the HTX exchange, warning investors about potential similarities between Tron founder Justin Sun and imprisoned FTX founder Sam Bankman-Fried. The channel suggested that Justin Sun’s operations resemble a house of cards and that FTX shows similarities to its downfall, speculating that Justin Sun could be the next Sam Bankman-Fried.
Discover Crypto analyst claimed that Justin Sun shares similarities with Sam Bankman-Fried. The analyst highlighted the need to shed light on the allegations against Justin Sun, especially regarding accusations of creating fake volume and engaging in illicit activities such as workplace harassment, stating that Tron blockchain plays a significant role in a billion-dollar crypto project.
Discover Crypto examined Tron’s initial coin offering (ICO) in 2017 and Justin Sun’s ability to profit over 70 million dollars despite China’s ban on crypto ICOs. The channel alleged that Justin Sun moved to South Korea to evade potential prosecution and that TRX was established under “illegal conditions.”
The channel also addressed a 70-page document filed against Justin Sun and the Tron Foundation in the US in 2019, which alleged physical assaults during office meetings by Sun and favoritism towards Chinese employees. Discover Crypto claimed that the Tron Foundation attempted to manipulate personal files and corporate email addresses.
This year, US regulators accused Justin Sun of fraud and violating securities laws. The SEC accused Sun and his entities of manipulating TRX through widespread wash trading. Wash trading refers to deceptive and manipulative transactions on an asset’s price and volume, misleading market participants.
Discover Crypto noted that these allegations have yet to be proven, but emphasized that these developments undoubtedly cast a shadow on Justin Sun’s reputation and the Tron project. The channel expressed concerns that Justin Sun and his affiliated crypto projects could follow a similar trajectory of scandals resembling Sam Bankman-Fried and FTX.