Justin Sun, who has been in the cryptocurrency world for many years and was very talked about with his tweets in the 2017 bull season, spent 2021 relatively quietly, but showed himself again in the FTX crisis by saying “I can buy the stock market”, this time came to the agenda with the HTX (formerly Huobi) exchange, where he is on the advisory board.
The first claim about Sun came yesterday from Ki Young Ju, CEO of on-chain tracking platform CryptoQuant. In his tweet, Young Ju claimed that Sun opened a long position of $420 million at a price of $67 thousand for Bitcoin.
Questioning the collateral in the transaction on HTX, Young Ju said, “USDT reserves are $24 million. Where does the collateral for this position come from? 460 million dollars of stUSDT was used. This is his own project with an annual return of 46 per cent. 89% of the supply is in HTX…”
Tweet deleted, allegations came from elsewhere
Ki Young Ju later deleted this tweet. After deleting the tweet, Young Ju, who received reactions that he received money from Justin Sun on X and therefore deleted the tweet, said, “We will clarify some points with the HTX team. I deleted it for this reason. I will also share the results of the Reserve Proof,” he said.
Justin Sun I did not open a position
Justin Sun, the founder of TRON, stated that he has full confidence in Bitcoin and looks to the future with hope, but he did not open a long position at this price and rejected the allegations.
“They will lie, they are like FTX …”
Adam Cochran, known for his analyses on cryptocurrencies, had much harsher words about Justin Sun. Cochran, who responded to Ki Young Ju and wrote a long tweet on X, stated that Sun manages the HTX exchange almost like FTX, has shell companies in China and shows them as technology companies to avoid problems with banks and used the following statements:
“They will lie to you about Proof of Reserve. They usually point to outdated addresses on DeFiLlama, but when it comes to new addresses, they produce many reasons.
They show Tron assets as their own assets on the exchange, but they don’t show BTC support.
They convert customers’ ETH to stETH on the back end. Then they give them interest until the customers’ withdrawal request.
Existing USDTs are actually stUSDT. When USDT comes in, it goes out of HTX and into Sun’s accounts, then it becomes stUSDT.
It always shows bonds as support assets, but it couldn’t prove it. He did it with Poloniex and TrueUSD.
After all that, he goes and does leveraged trades with his own money.
He transfers the money through his connections to his dummy companies in China. Most of these companies use the names of his mother Yiyiang Jiang, his father Sun Weike, and his father’s second wife Li Jingmei.
One of the shell companies is Shenzhen Lanyu Technology Network, of which Yiyiang Jiang was formerly a director. Li Jingmei then became the director. This company is the shell company of Tron Blockchain in China. Yiyiang Jiang is currently the registered director of the Dubai leg of Huobi (HTX).
They are now openly running the company like FTX. They have fake cross-chain entities, entities without support, and even fake electronic companies. Thanks to these companies, they are able to operate without problems with Chinese regulators and banks.
Many employees are directly connected to Sun and depend on payments from him. They don’t know what kind of crimes he has committed. They simply have to trust him.”