"Discover Crypto", a crypto-focused YouTube channel, commented on the future of the HTX exchange. The channel has warned investors about potential parallels between Tron founder Justin Sun and FTX's now-imprisoned founder Sam Bankman-Fried. The channel claims that Justin Sun's operations resemble a house of cards and bear similarities to the collapse of FTX. According to the channel, Justin Sun is the next Sam Bankman-Fried.
Warnings About Justin Sun
Analyst at Discover Crypto claimed that Justin Sun shares similarities with Sam Bankman-Fried. He drew attention to the important setbacks encountered recently. The analyst highlighted the need to shed light on Justin Sun's alleged involvement in illegal activities, including generating fake volume and workplace harassment, especially given his influential role in the multibillion-dollar crypto project Tron Blockchain.
Exploring the history of Tron's initial coin offering (ICO) for the TRX token in 2017, Discover Crypto emphasized that Justin Sun controversially earned over $70 million despite the Chinese government banning crypto ICOs.
The channel claimed that Sun moved to Korea to escape potential prosecution and emphasized that TRX's founding took place under "illegal conditions."
Unpleasant Events in the Past
The channel also addressed the workplace harassment controversy involving Justin Sun and the #TronNetwork Foundation, citing a 70-page document filed against them in the US in 2019. The allegations include physical attacks by Sun during office meetings and favoritism towards Chinese employees.
Discover Crypto also alleged that the Tron Foundation attempted a cover-up by manipulating personal files and corporate email addresses. There is another issue that the analyst touched upon. And that is the US regulator's accusations against Justin Sun.
Discover Crypto noted that the US regulator filed fraud and securities law violation charges against Justin Sun this year. The SEC charged Sun and his entities, alleging manipulation of TRX through widespread wash trading. Wash trading means misleading and deceiving market participants about the price of an asset and the volume of transactions made.
Discover Crypto also stated that these claims are unproven. However, he concluded that the developments cast an undeniable shadow on Justin Sun's reputation and the Tron project. Citing a series of scandals, the channel expressed concern that Justin Sun and crypto projects associated with him could be on a similar trajectory to Sam Bankman-Fried and FTX.
