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TRON CEO Justin Sun is facing backlash yet again because of his silence on a controversy as the TRON community is left to deal with the aftermath.
A Ponzi scheme in China affiliated itself with TRON and robbed victims out of millions of dollars. Sun was reportedly approached to clarify TRON’s relationship with the Ponzi scheme but he chose to keep silent. Now hundreds of thousands of victims are furious at Sun who enabled the scam in silence, Chinese crypto news site Nuclear Finance reported.
In China, TRON is apparently known by the name of “Wave Field.” In January, a Ponzi scheme started operating there under the name of “Wave Field Super Community” and claimed associations with the popular blockchain platform and cryptocurrency. This deliberate confusion helped the Wave Field Super Community to lure in thousands of investors who believed it to be legitimate.
Victims have said that ever since the launch of the Ponzi scheme, Sun had been approached to clarify the relationship between TRON and “Wave Field Super Community”; however, he chose not to respond. Wave Field Super Community doubled down on its claims of association with TRON by claiming to be a “Super Representative,” one of 27 nodes given special status on the blockchain platform.
Unsuspecting investors put their cryptocurrency TRX that is worth for some millions of dollars into the Ponzi scheme with the promise of major returns. The TRX digital currency saw increased activity and liquidity because of these investments pouring into the Ponzi scheme. After collecting around $30 million in investments, the Wave Field Super Community suddenly shut up shop last week.
Crypto Ponzi Scheme that Led to Suicide
Investors who put their money into the scheme are in a state of panic and anger as they come to grips with the fact that they’ve been robbed. There have even been reports of a suicide of Xia Bing, a middle-aged single mother who borrowed money from her neighbors to invest in the Ponzi scheme. Her suicide note and photographs went viral on the Chinese personal messaging app, WeChat.
Victims of the fraud are understandably angry at Sun for his failure to separate himself and TRON from the crypto Ponzi scheme in time. Instead, victims claim that Sun silently partook in a willful negligence as the TRX cryptocurrency gained value because of the Ponzi scheme.
Sun did finally reply on Weibo, a Chinese social media platform, warning investors of Ponzi schemes in general. However, the reply came one day after the Ponzi scheme’s website already went down. Furthermore, he still did not mention Wave Field Super Community by name in his message.
Justin Sun seems to enjoy being in the crypto news spotlight, even when the news aren’t that positive. Just recently, he had a very public and scandalous falling out with his former CTO and additionally he won a lunch with the legendary investor Warren Buffett.