Key Takeaways

  • Justin Sun has denied using leverage to trade Bitcoin following rumors that the founder was facing liquidation.

  • Justin Sun is rumored to have accumulated $1.11 billion worth of Ethereum.

  • As the market falls, the crypto community is closely watching Justin Sun’s movements.

TRON (TRX) founder and Huobi chief advisor Justin Sun has clarified things about his Bitcoin investment on social media.

Amid rumors and speculation, Son responded to allegations that he had a large long position in Bitcoin at the $69,000 price level with outspoken denials.

The TRON founder denied the allegations made by CryptoQuant CEO Ki Young Ju, who had previously suggested that Justin Sun made a bold bet on the price of Bitcoin using stUSDT as collateral.

Justin Sun responds to Bitcoin investment rumors

Ki Young Ju’s accusations also extend to calling Justin Sun the mysterious HTX whale, who allegedly established a long position in Bitcoin at $67,000, with a position valued at at least $420 million.

Yu expressed concerns about the source of collateral, noting that USDT reserves are around $24 million. CryptoQuant CEO claimed that Sun used $460 million worth of stUSDT, a stablecoin project known for its high annual yield, and 89% of its supply is HTX.

However, Yu later deleted his post, stating that he intended to address the matter directly with the exchange team, stressing that he did not want to negatively impact their business before the exchange responded.

We prefer to support this industry

Justin Sun revealed that in order to quell speculation, he rarely engages in leveraged trading.

The Tron founder stressed that such high-risk transactions add little value to the industry. Instead, he is committed to promoting meaningful growth and supporting entrepreneurs and the broader ecosystem.

Sun said his focus is on more constructive pursuits, including “staking, operating nodes, collaborating on projects, and assisting project teams with liquidity.”

While Sun clarified that he had nothing to do with the $69,000 Bitcoin price level, he did not comment on recent allegations that he had purchased Ethereum. Reports indicate that Sun may have purchased 362,751 ETH worth about $1.11 billion in three different wallets since February 8.

Bitcoin plummets

Sun’s clarification comes amid a chaotic crypto writing landscape. As of press time, the market has suffered a catastrophic downturn, with $600 billion wiped out of total market capitalization, nearly $1 billion in liquidations, and a 15% drop — the largest single-day drop since November 2022.

Experts point out that there are multiple factors behind the stock market crash, including the decline in global stock markets.

Japan's Nikkei suffered its worst two-day drop since 1987, while U.S. stocks' big tech shares also struggled. The S&P 500 has fallen 7% over the past three days, highlighting the broader market's volatility.

Additionally, rumors that Jump Crypto, a major market maker in the cryptocurrency industry, was under investigation may have also contributed to the market's downward trend.