Blockchain protocol Chain is weighing authorized motion towards TRON founder Justin Sun following allegations of market manipulation. On January 24, Sun accused Chain of partaking in actions that would hurt cryptocurrency alternate customers, particularly referencing the usage of excessive leverage and contracts.
Sun posted on the platform X (previously Twitter), tagging main exchanges resembling Coinbase, Kraken, Bybit, KuCoin, and HTX Global, urging them to research Chain’s actions.
Chain Threatens Lawsuit Against Justin Sun Over Market Manipulation Claims
Following a heated discussion on X, Chain introduced its intent to pursue authorized motion towards Justin Sun. The dispute started when Sun claimed that Chain’s alleged actions posed dangers to crypto alternate customers. He additionally said he would report Chain’s actions to the SEC and DOJ.
In response, Chain firmly denied the allegations. The firm clarified that it’s not concerned in any buying and selling or manipulation of its XCN token. Chain additionally said that XCN is managed by OnyxDAO, not by Chain itself. The firm emphasised its dedication to transparency and accountability whereas exploring authorized choices towards Sun.
Founded in 2014, Chain has raised over $40 million from traders, together with Pantera Capital and Citigroup. The firm has undergone vital developments, together with its acquisition by Stellar in 2018 and re-acquisition in 2020. Chain operates within the blockchain area with a concentrate on advancing decentralized know-how.
Notably, the lawsuit risk emerged days after Justin Sun revealed a method to boost ETH price to $10,000 by halting ETH gross sales and taxing Layer 2 options.
Sun Tags Major Exchanges and Demands Investigation
Justin Sun’s accusations had been amplified by tagging cryptocurrency exchanges in his submit. He referred to as on platforms like Coinbase, Kraken, and Bybit to research Chain’s actions. Sun warned of the alleged dangers related to excessive leverage and contracts utilized by Chain.
Chain’s response included a transparent assertion disassociating itself from the administration of the XCN token. The firm reiterated that OnyxDAO manages XCN and denied any involvement in buying and selling or market manipulation.
The blockchain protocol tweeted,
“The Chain team is not actively engaged in any trading of XCN, nor involved in any market manipulation directly or indirectly. We take these allegations extremely seriously and are exploring legal remedies against Justin Sun.”
XCN Price Action
This escalation occurred amidst a surge in XCN’s market worth. The token recorded a 149% value improve in someday and almost 400% over the week. Sun’s claims appeared to hyperlink this value motion to alleged manipulation, additional intensifying the scenario.
At press time, Onyxcoin (XCN) is buying and selling at $0.0242, marking an increase of 32% over the previous 24 hours. The cryptocurrency has seen a rise in buying and selling quantity, up 273% to $1.42 billion, alongside a market capitalization that has grown to $745.24 million.
Meanwhile, the Tron co-founder just lately emphasised the safety benefits of Wrapped Bitcoin (WBTC) over Coinbase Wrapped BTC (CBBTC). Justin Sun critiqued Coinbase’s lack of a Proof of Reserves system, highlighting the chance of asset freezing.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with 4 years {of professional} expertise, having contributed considerably to varied media shops on cryptocurrency tendencies and applied sciences. With over 4000 printed articles throughout varied media shops, he goals to tell, educate and introduce extra folks to the Blockchain and DeFi world. Outside of his journalism profession, Ronny enjoys the fun of motorbike driving, exploring new trails and landscapes.
Disclaimer: The introduced content material could embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty to your private monetary loss.
