Meet Justin Sun: The Chinese Fugative Who is now Charged By The SEC For Financial Fraud And Other Security Violations

Following the spectacular fall of Sam Bankman Fried, the crypto community is now focusing their attention on the founder of Tron (TRX)-Justin Sun. From his investigation by the SEC (U.S Securities and Exchange Commission), financial fraud, to claims of terrorism financing, Justin Sun is nothing short of a controversial character. Industry experts are now calling Sun a criminal, and they are urging for his removal from the crypto industry. But history has proven that it won't be that easy to catch Sun, as the track record has shown that he has a very unique way of slipping through the hands of the authorities.

Early Education

Born in 1990 in Xining, China, Justin Sun developed an early fascination with the convergence of technology and business. After graduating with a Master's from the University of Pennsylvania, Sun then started his career journey at Ripple Labs in 2013, where he took on the role of chief representative and advisor.

In addition to his role at Ripple Labs, Sun also founded Peiwo, a voice-based social media application in China. These early career milestones were crucial in laying the foundation for Sun's later ventures in cryptocurrency and blockchain technology, where he would go on to make some groundbreaking contribution.

Fugutive, escaping from the Chinese government

The TRON Foundation is probably a major contributor to Sun's sky high net worth. Tron (TRX) is a blockchain platform that is aimed at revolutionizing digital content and entertainment distribution through decentralised technology. This was back in 2017 during the early heights of the crypto craze, where the Chinese government has labelled all ICO (Initial Coin Offering) as a method for financial fraud. But for some reason, Sun, who just launched a project in Beijing, managed to finish the Tron token ICO, earning over $70 million before escaping to Korea.

According to Sun's former employee, Sun was tipped off by ChangPeng "CZ" Zhao, the founder and CEO of Binance. So by the time the Chinese government knock on Sun's office, he was already long gone.

His Excellency, Justin Sun

For some reason, Sun got himself appointed by the World Trade Organisation (WTO) as the ambassador for Grenada by the government of the country.

This allowed him to go by the title of "His Excellency". Not only does Sun force people to call him by that title during interviews, he flaunts his newly earned title all over his social media account. He even started his own diplomatic Twitter account with the name handle H.E Justin Sun.

Shortly after, it was reported that he was stripped of his title in June 2022. According to a report from the Grenada Broadcasting Network, Sun was stripped of his status as ambassador sometime after elections held in June 2022, when the New National Party, which granted Sun his position, was ousted by the National Democratic Congress.

Allegations from SEC

SEC has charged Sun for offering and selling Tronics (TRX) and BitTorrent (BTT) tokens as investments. Sun was charged for unregistered offering and sales of crypto asset securities TRX and BTT, but also manipulating the secondary market for TRX through extensive wash trading. In order to make the Tron TRX more popular than it really was, Sun and his colleagues made a lot of fictitious trading accounts to buy and sell the token in large quantities, with many of these trading accounts linked back to Sun.

Tron facilitating terror financing

There also has been increasing reports that Tron has been gaining traction among terror groups due to its swift and cost-effective transactions. Between July 2021 and October 2023, Israel's National Bureau for Counter-Terror Financing (NBCTF) seized a total of 143 Tron wallets associated with terror groups.

Notably, 39 of the confiscated wallets was linked to Lebanon's Hezbollah, and 26 belonged to Palestine's Isamic Jihad. While we do not know the specific relationship between the two organisations, the fact that Tron's continued partnership with these terror groups is definitely raising some eyebrows.

Getting to know your investment

Knowing about the checked past of Tron founder, Justin Sun, is more than just to satisfy an itch for the latest gossip. Rather, it is important for you to know as much as possible about a project you are getting into, and more importantly, who is behind it. This diligence is vital in making informed investment decisions and mitigating potential risks associated with your investments.