Justin Sun in Hot Waters Over Terror Ties

Justin Sun’s Tron blockchain is facing criticism for its associations with terrorism. Civil authorities are looking into the solvency of Sun’s HTX and Poloniex exchanges, which appears to be increasingly uncertain.

Shift From BTC to Tron

On November 28, Reuters published an update on Tron’s growing popularity with Islamic terror groups. This has resulted in Tron being the blockchain of choice for Iranian-backed groups such as Hamas and Hezbollah, surpassing BTC.

Transactional Convenience and Tether

According to Reuters, the reasons for this shift include Tron’s more affordable transaction fees and faster confirmation times. Further, the most popular chain for new issuances of the Tether (USDT) stablecoin is Tron, which is the preferred digital currency of terror groups.

Frozen Tron Wallets

Since 2021, Israel’s National Bureau for Counter Terror Financing (NBCTF) has frozen 143 Tron wallets due to their connections with terrorist organizations or severe terror crimes. This shift from BTC to Tron has raised concerns about terrorist financing.

Global Efforts to Combat Terrorism

In response to this situation, a new international task force has been formed to enhance the sharing of intelligence on terrorist-financing-related matters. This task force, involving a number of countries, aims to stop the flow of funds to groups like Hamas and Hezbollah.

U.S. Treasury Department Request for New Powers

Moreover, the U.S. Treasury Department has requested new powers from Congress to target digital asset platforms that are believed to be facilitating terror-linked transfers. This includes direct authority over US dollar-denominated stablecoins.

Clamp Down on Digital Asset Platforms

The U.S. Treasury Department’s requested tools include the ability to prevent blockchain-based terror financing, which could affect Tether and Sun’s own TrueUSD. This move aims to clamp down on the potential misuse of cryptocurrencies.

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Challenges Faced by Tron and Tether

Most Tether (USDT) is issued on Tron, which has raised concerns given Tether’s history of cooperating with U.S. authorities. Tether’s cooperation with U.S. authorities follows a significant settlement between the U.S. Department of Justice, Binance exchange, and its founder Changpeng ‘CZ’ Zhao.

Tron’s Varied Troubles

Sun’s reputation has faced additional scrutiny for failing to cooperate with Dutch courts trying to identify a scammer. This has culminated in substantial penalties imposed on Huobi Global Limited, much of which is being attributed to Sun’s failure to provide identifying details on the scammer and freeze the wallet address used in the scam.

Questionable Practices at HTX and Poloniex

HTX and Poloniex, Sun’s digital asset exchanges, have also faced criticism following ‘security breaches’. These exchanges have been accused of taking advantage of their customers by enticing them with absurd airdrops and offering unreasonable incentives to coax additional deposits.

Prevention of Withdrawals and Promising Airdrops

HTX has discouraged customers from withdrawing assets by offering incentives such as a ‘premium asset’ airdrop. These moves seem designed to stop customers from withdrawing to fund the payment of others who have fallen for these strategies

Clamor Around Upcoming Airdrops

In addition to the mysterious airdrops, HTX has attempted to keep customer assets by luring them with absurd incentives for deposits. This reflects an apparent trend of Sun trying to protect his customers from withdrawing, who may be falling prey to the aforementioned tactics.

Uninsured Moves by Sun

The connectivity of these events has fueled suspicions that these ‘hacks’ could be Sun’s ploy to take advantage of customers, raising concerns that this could be a ruse ahead of bigger plans.

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Retrograde Moves by Sun

Sun’s continued reluctance to cooperate with the Dutch courts has signaled further trouble for his business practices. With a history of ill-advised choices, the current state of his business affairs does not bode well.

In conclusion, while Tron and Tether have gained popularity, they have also been subject to increasing scrutiny over the past several months. Justin Sun, along with his digital asset exchanges, has been embroiled in controversy over terror ties and questionable business practices. These events raise significant concerns about the future of Sun’s operations.



### News source: coingeek.com

By Team